How to Report Alabama’s Overtime Pay Exemption on W2 Forms

This post is dedicated to Payroll Mate and W2 Mate Alabama users who are required to report exempt overtime wages on form W-2.

The Alabama Department of Revenue proposes that exempt overtime wages be reported in Box 14 of employees Form W-2 using “EX OT WAGES” as the indicator: for example, EX OT WAGES- $15,250.

If space becomes an issue in Box 14, this may be abbreviated (e.g., EX OT $15,250), or the text may be wrapped.

Please not that W-2Box 14 reporting of Alabama exempt overtime begins with the 2024 tax year.

To enter the Alabama exempt overtime wages on form W-2 using W2 Mate:

  1. Open W2 Mate software.
  2. Click on the “W2 Forms” screen from the left toolbar.
  3. Click “Select” and highlight the employee for whom you wish to update the W-2 form.
  4. Click the OK button.
  5. Highlight Box 14.
  6. If you are reporting $5000.00 as exempt overtime wages for example, then enter “EX OT $5,000”.
  7. Click the “Save” button.
  8. Repeat the same steps for the rest of your employees.
  9. Now click the “Print” button and select the employees you want to print the W-2 form for, select the copy type and then click OK.W2 Mate will print the W2 forms with Alabama’s overtime pay exemption included in Box 14.
  10. Review your W2 Forms and Hand out to your employees.