Include SIT-Exempt Overtime Earnings for Third-Party Tax Reporting for the US

Alabama allows the exemption of overtime earnings from state income tax (SIT).

Third Party Periodic Tax Extract

To report this to your tax-filing provider, the Third Party Periodic Tax Extract includes the following.

Overtime info	How you report it
Count of employees who have exempt overtime wages in a month	The extract derives this count by tax reporting unit (TRU) and effective date. It doesn't consider the payroll frequency. It's a running total of employees with exempt overtime wages based on the month of the liability date. It counts an employee once per month, regardless of how many times they had exempt overtime wages. To review this count: Run the Third-Party Tax Filing Audit Report Detail using start and end dates for a given month. The ALSIT tax code records display the exempt wages for Alabama overtime. Use the exempt wages to determine if the employee is counted for the month. Note: If an employee has exempt wages in two payroll frequencies for the month, the extract still counts them once. If you're using a tax filing provider other than ADP, refer to their documentation on how they report these counts.
Overtime exempt wages	Because the wages are reported by the period being reported, you can reconcile them against the periodic detail audit report.

Overtime info

How you report it

Count of employees who have exempt overtime wages in a month

The extract derives this count by tax reporting unit (TRU) and effective date. It doesn't consider the payroll frequency.

It's a running total of employees with exempt overtime wages based on the month of the liability date. It counts an employee once per month, regardless of how many times they had exempt overtime wages.

To review this count:

Run the Third-Party Tax Filing Audit Report Detail using start and end dates for a given month.

The ALSIT tax code records display the exempt wages for Alabama overtime.
Use the exempt wages to determine if the employee is counted for the month.

Note: If an employee has exempt wages in two payroll frequencies for the month, the extract still counts them once.

If you're using a tax filing provider other than ADP, refer to their documentation on how they report these counts.

Overtime exempt wages

Because the wages are reported by the period being reported, you can reconcile them against the periodic detail audit report.

Third Party Quarterly Tax Extract

To report this to your tax-filing provider, the Third Party Quarterly Tax Extract includes the following.

Overtime info	How you report it
Overtime exempt wages	The ALSIT tax code record includes the quarter-to-date and year-to-date balance values using the Wages Earned for Hours Worked in Excess of Statutory Limit balance.