ICS Staff | Dec 15, 2020 | 0
State Minimum Wage Increases Again July 1, 2020
During the 2019 spring legislative session, legislation was passed to increase the State’s minimum wage to $15/hour by 2025. Under the law, the minimum wage will have stepped increases over the next five years. By 2025, the law will fully be implemented. The first increase occurred on January 1, 2020.
The next increase begins on July 1, 2020. Please review your payroll to ensure you are meeting this minimum requirement.
The increased minimum wage will vary based upon the age of the employee. For employees over the age of 18, regardless of number hours worked, the minimum wage increase will apply as follows:
January 1, 2020: $9.25/hour
July 1, 2020: $10/hour
January 1, 2021: $11/hour
January 1, 2022: $12/hour
January 1, 2023: $13/hour
January 1, 2024: $14/hour
January 1, 2025: $15/hour
For employees under the age of 18 and who have NOT worked more than 650 hours in a calendar year, the minimum wage increase will apply as follows:
January 1, 2020: $8/hour
January 1, 2021: $8.50/hour
January 1, 2022: $9.25/hour
January 1, 2023: $10.50/hour
January 1, 2024: $12/hour
January 1, 2025: $13/hour
If an employee is under the age of 18 but HAS worked more than 650 hours in a year, an employer is required to pay the same minimum wage for individuals who are over 18 years of age.
There are some potential payroll tax credits that were implemented as part of the minimum wage increase. Chiropractic physicians should seek additional advice from their tax professionals to learn who may qualify for those tax credits.