Due to an Alabama State legislative bill recently signed into law, starting on or after January 1, 2024, Non-Exempt (Bi-weekly paid) employees will receive a withholding exemption from Alabama state taxes on overtime wages.  

This tax exemption will take effect on the January 19th bi-weekly payroll, covering the pay period from December 31st to January 13th.

Please note that for overtime wages earned between December 17th and December 30th, non-exempt employees will be subject to Alabama state tax withholdings on overtime wages on the January 5th payroll.

If you have any questions, please reach out to payhelp2@uab.edu.