New Minimum Wage Laws

There are some changes to the minimum wage laws that you may not be aware of that began as of January 1, 2016. With some exceptions, the federal minimum wage is $7.25 per hour. But your state may require you to pay a different rate, and that rate may have changed as of January 1. When employees are subject to both state and federal minimum wage laws, the law says you need to pay the higher of the two. Don’t forget that overtime rates are also affected by the minimum wage.

Offering employees fringe benefits can be a very valuable recruiting and retention tool. However, that may not hold true for younger workers. Some studies show that the younger workers prefer higher wages or paid time off rather than the traditional benefits some companies offer. Be sure to explain the company fringe benefits as well as payroll practices to all of your employees at the time of hire.

At Summit CPA we have multiple resources to ensure your business strategy is on the right track. We have the capability to assist you virtually anywhere in the USA. If you need assistance, contact our office at (855) 977-7623 to schedule an appointment with our advisors.