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February 9, 2023
There is a particular agony in the air at the beginning of the new year.
The holidays are over and the “real world” comes roaring back.
But as payroll administrator, your agony is multiplied this year since nearly half of the states changed their minimum wage rates. You struggle to keep up with ever-changing laws and regulations anyway, but this year is particularly challenging.
How will you wrap your head around all these changes? We’re payroll professionals, too, so we feel your pain!
Read on to learn the steps you can take and the resources you can use to start 2023 on the right foot.
States like California and Washington have recently increased their minimum wage to over $15 per hour, while others like Arkansas and Maine had laws to gradually increase it by $15 by 2025.
We’ve included two charts listing the main minimum wages for your convenience.
However, many states have multiple minimum wage rates based on the number of employees or specific industries.
For a general overview of minimum wage rates, please refer to the US Department of Labor page on state minimum wages.
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Source: State Minimum Wage Laws
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Source: State Minimum Wage Laws
Please note that some cities and/or counties in Arizona, California, Illinois, Maryland, Maine, Minnesota, New Mexico, New York, Oregon and Washington currently or are planning to have specific minimum wages and laws. You can learn more about these rates from the Berkeley Labor Center.
California residents can also use the information from the California Department of Industrial Relations.
Once you have all the information you need, you can start updating your company's payroll system - and if Revolution is your payroll provider, you don’t have to make any changes yourself! We will update the existing minimum wages and ensure the changes are applied in a timely and accurate manner.
You may also consider the potential impact of new state minimum wages on your company's projects. While higher minimum wages can benefit employees, they can also increase project costs.
Consider the potential impact and make any necessary adjustments to your company's budget.
To help offset the costs of higher minimum wages, look into any tax credits or deductions that may be available to your company.
The Federal Work Opportunity Tax Credit (WOTC) offers a tax credit for hiring employees from certain targeted groups, such as veterans or individuals with disabilities.
Additionally, many states offer their own tax credits for businesses that provide benefits to their employees.
Lastly, communicate the changes to your employees through an employee newsletter and hold a meeting to discuss the changes.
Make sure to clearly explain the changes and how they impact each employee. Remind them of their rights and responsibilities under the new laws.
Thanks to your research and hard work, help your company's payroll system will be updated with ease and without causing any financial strain on the business!
Revolution Entertainment payroll services can provide a stress-free and low-cost payroll solution for any size or type of production. With the implementation of the new state minimum wages updated in the system, employees and employers will have peace of mind knowing everyone is receiving the correct pay.
The Revolution Team
