Employers across the country are playing catch-up on several employment related tax adjustments on both a Federal and State level. Recently, we updated you regarding the Temporary Payroll Tax Cut Continuation Act of 2011 and the payroll tax cut extension through February 29, 2012. Now we want to advise you that several states are increasing their minimum wage, effective January 1, 2012. As a reminder, be aware that when federal and state payroll laws differ, the employer must adhere to the law which benefits the employee the most. In cases where the state minimum wage is higher than the federal minimum wage of $7.25, the employee must be paid the higher state wage.
Below is a listing of states whose minimum wage increased January 1. A complete list of minimum wage by state can be found on the Department of Labor’s website.
Arizona $7.65
Colorado $7.64
Florida $7.67
Montana $7.65
Ohio $7.70
Oregon $8.80
Vermont $8.46
Washington $9.04
Federal Minimum Wage (remains the same) $7.25
Professional Employer Organizations (PEO) assist small to mid-sized companies with a variety of employee administration needs, responsibilities, and liabilities, including employment tax administration, compliance, and remittance. To learn more about how a PEO can assist you and your company with its employee administration needs, please contact an LL Roberts Group PEO.
