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Posted on 5/22/25 at 12:14 pm to Gravitiger
quote:
OP's question boils down to how the bill defines "qualified overtime income."
‘‘(b) QUALIFIED OVERTIME COMPENSATION.—
12 ‘‘(1) IN GENERAL.—For purposes of this sec
13 tion, the term ‘qualified overtime compensation’
14 means overtime compensation paid to an individual
15 required under section 7 of the Fair Labor Stand
16 ards Act of 1938 that is in excess of the regular rate
17 (as used in such section) at which such individual is
18 employed.
Section 7 of the FLSA states generally time worked over 40. There are exceptions listed.
Posted on 5/22/25 at 12:15 pm to GumboPot
quote:
What would be interesting is if corporations exploit a potential loophole on no tax on OT.
For example management could convert existing salaried employees to an hourly wage and agree to pay them for 60 hours of work a week regardless of how many hours worked.
Then they could renegotiate a current salary from $150k to $135K where the employee is taking home more money and the corporation is paying out $15k less. It's a win/win
Alabama already has no state income tax on OT.
This explicitly does not apply to salary non exempt workers, which you are describing in your question.
Posted on 5/22/25 at 12:15 pm to AaronDeTiger
Wish this was the deal when I used to work 85 hrs. a week on a drilling rig.
Posted on 5/22/25 at 12:19 pm to Cow Drogo
If you make more than $107k, you won’t be eligible.
Posted on 5/22/25 at 1:16 pm to dickkellog
Nope
My company breaks it down separately
Would have 50 hours at 50$ an hour base
Then OT .5 rate at $25 an hour for 10 hours
Which would be the shitty situation in question that only 250$ would be tax exempt instead of the full 750$
My company breaks it down separately
Would have 50 hours at 50$ an hour base
Then OT .5 rate at $25 an hour for 10 hours
Which would be the shitty situation in question that only 250$ would be tax exempt instead of the full 750$
Posted on 5/22/25 at 1:17 pm to TigerVespamon
Link?
Posted on 5/22/25 at 1:39 pm to TigerVespamon
quote:Where did you see this?
If you make more than $107k, you won’t be eligible.
Posted on 5/22/25 at 2:17 pm to Privateer 2007
quote:I guess you are one of those that's ok with letting Uncle Sam hold YOUR money for up to a year, interest free?
But, there is no effect on tax whether you work 40 or 70 hr weeks.
Posted on 5/22/25 at 2:19 pm to East Coast Band
quote:My wife is a nurse manager in Alabama. She gets at least 10 hours of OT each paycheck. This would be very good for us.
Alabama already has no state income tax on OT.
This explicitly does not apply to salary non exempt workers, which you are describing in your question.
Posted on 5/22/25 at 2:22 pm to Topwater Trout
quote:Yep. I work with someone just like that. She looks at it like forced savings. Files a rapid return as soon as she gets her W-2 and the money is gone within a week.
always makes me laugh when people brag about their tax return...but many take it as a windfall and rely on it every year. Hell i know a guy that would take an extra $100 out a week to get bigger returns
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