@ Debbie Moran, we are currently researching this issue and will follow back soon and let you know our findings. 

With the Q2 update, there were instructions to handle Alabama employee overtime, which is not subject to Alabama withholding in 2024. It's possible that with that change (assuming you followed the instructions to set that up), along with the employees filing status/dependents/personal exemption, they are below the threshold for withholding. 

I researched the matter, and that is not the case.  Alabama does not have a max on State Withholding.  I compared YTD 2024 to Y/E 2023, and all employees had greater earnings on Dec 31, 2023,  than YTD 2024, and still had SWT withheld.

Yes, OT that is true OT (over 40 hour work week), does not have SWT.  I checked this when it was implemented, and it was working correctly in Q1 2024.  Any employees who had exempt OT, were set up with a separate earning code (OTX) and no SWT is withheld from those earnings, but SWT was withheld correctly on Regular Pay and OT that was not exempt.

On the most current pay day, that was paid today, 4/19/2024, the employees who had no AL SWT did all have OTX (exempt) earnings.

The common denominator seems to be, for Q2 earnings only, that anyone paid on earning code OTX (OT exempt from AL SWT), did not have ANY SWT taken out, even though they had other earnings besides the exempt OT.

Q1 2024 appears to have worked correctly, so it seems that it only began after the Q1 2024 update done 3/27/2024 before the first processing of Q2 earnings.  Q1 was processed under version V10.7067, the upgrade done on 3/27/2024 is version V.10.7069

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@Debbie Moran, a hotfix has been created to fix the issue when regular earnings and overtime earnings are processed together.  Learn more and download this fix (KB article 119984)