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Minimum Wage Increases Will Impact More Than Just Paychecks

Posted by Maslow on 14 Jan 2019

The New Year kicked off with 20 states and multiple cities adopting minimum wage increases.  While millions of employees take home larger checks, thousands of employers must readjust their policies and prices in order to meet budgets and stay compliant.

While the Federal minimum wage has remained stagnant at $7.25 since 2009, many states and cities have adopted a higher minimum wage to accommodate increases in the cost of living.

Minimum wage increases have a direct impact on businesses:

  • Payroll taxes increase.
  • Compensation structures are reevaluated and pay adjustments may be needed in order to differentiate between entry-level positions and those above them.
  • Certain employees may be eligible for additional compensation. In California, for example, exempt employees must earn a minimum monthly salary of no less than two times the state minimum wage for full-time employment.
  • Failure to comply to minimum wage increases can lead to litigation costs, fines or penalties.

Compliance is essential to protect your revenue and reduce your stress level.  The constant changes in employment laws, rules, and regulations are difficult to keep up with.

Maslow Media Group can help you not only survive 2019, but also prosper. As a leading Payroll company and Employer of Record, we regularly help clients navigate payroll compliance concerns, while handling all related expenses and insurance.

We can customize your company’s paycheck cycles to intervals that best suit your needs, and we make it our business to be versed all compliance laws, from ACA to mandated sick leave, and beyond.

Reach out to us today to request a quote.

Topics: Blog