Tuesday November 6th 2018
As usual, the new year will usher in a multitude of changes in state and municipal minimum wage laws. Let’s take a look at some of the reasons why payroll professionals need to be aware of the changes.
Montana, New Jersey, Ohio, South Dakota, and Vermont will all raise minimum wages on January 1, 2019. Most increases are in line with the increase in local inflation. Many states are also raising hourly wages for tipped employees.
At the same time, many municipalities are setting their own minimum wages for the new year, often with much higher minimum wages than state laws require. In 2019, Seattle employers with more than 500 workers worldwide must pay at least a $16 hourly minimum wage. Seattle employers with no more than 500 workers that do not contribute toward employees’ medical benefits or reported tips must pay at least a $15 hourly minimum wage in 2019.
Los Angeles has also announced that its minimum wage will rise $1 an hour (7.5 percent) to $14.25 for companies with 26 or more employees, but this increase will not take effect until July 1, 2019. Smaller employers’ workers will get a $1.25 increase to $13.25. This rate is $2.25 more than the state’s minimum wage.
While some pay standards will change with the ringing in of the new year, others will stay the same. For example, the unemployment-taxable wage base for 2019 is changing in only four states:
With these changes, it’s important for payroll professionals to be aware of what will impact processing in their states and for their employees. iSolved will be updated with the changes to maintain compliance with the latest rules and regulations across the states.
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