As previously announced and as described in the ADP TotalSource's Insights and Solutions bulletin, in June 2023, Alabama enacted House Bill 217  (HB 217 or the Bill), which excludes from gross income for state income tax (SIT) purposes amounts received by a full-time hourly wage-paid employee as compensation for work performed in excess of 40 hours in a week.  This exclusion goes into effect for overtime wages paid beginning Jan. 1, 2024, and is currently scheduled to end on June 30, 2025.

Many employers reward and recognize high performers with a bonus, especially toward the end of the year. If you award bonuses, there are several overtime and tax rules to consider. Here’s an overview of some of these rules to help you as you close out the business year in 2023.

At ADP® we are always helping you to stay on track with all your business needs. December is the perfect time to remind you of your Occupational Safety and Health Administration (OSHA) recordkeeping requirements. If your company is not partially exempt (either by industry, size, or both), ADP will help you fulfill this responsibility by providing your company with its preliminary 300 Log of Work-Related Injuries and Illnesses and 300A Summary of Work-Related Injuries and Illnesses at the end of January each year.

The Washington Department of Labor & Industries (WDOL) has announced  an increase to the state’s white collar overtime exemption salary threshold.   

Please complete your HIRD form filing online via MassTaxConnect before December 15. Massachusetts law requires certain employers to file an annual Health Insurance Responsibility Disclosure (HIRD) form containing information about employer-sponsored health benefits offerings.