As 2018 begins, there are several updates you need to make to ensure your business is remaining up to date. One of these is minimum wage.
Minimum Wage Defined
Minimum wage is the lowest amount an employer can pay an hourly worker. The current federal minimum wage is $7.25 per hour.
However, the federal ruling does not trump state or local laws when they are more favorable to employees. In other words, if your particular state has a higher minimum wage than the federal rate, you get to pay your employee that wage.
What’s New in 2018
There has recently been a movement to increase the hourly wage for lower paid workers. This movement is picking up in 2018, with several states increasing their minimum wages.
If you have employees in these states, you need to comply with these changes. Also, take note, as several of these changes are part of gradual raises over several years. Meaning, we’ll be talking about this next year, and the year after that.
What Are the Changes?
States with minimum wage changes effective January 1, 2018, or before, include:
|State||New minimum wage|
|California||$11/hr with 26 employees or more
$10.50/hr with fewer than 26 employees
|Minnesota||$9.65/hr for large employers (annual gross revenue of $500,000 or more)
$7.85/hr for small employers (annual gross revenue of less than $500,000)
|New York||$11/hr for Nassau, Suffolk and Westchester counties
$10.40/hr for the remainder of New York
$12/hr for NYC small employers (10 or less)
$13/hr for NYC large employers (11 or more)
$13.50/hr for fast food employees in NYC
$11.75/hr for fast food employees outside NYC
|Ohio||$8.30/hr (gross receipts of $305,000 or more)
$7.25/hr (gross receipts under $305,000)
Minimum wage directly impacts your business if you have hourly employees. You need to ensure your organization is in compliance with the current rates for your specific state, and that your accounting software accurately reflects these changes in the New Year.