Around the United States, payroll departments and professional employer organizations (PEOs) have begun receiving notification that state minimum wages are changing for 2014. This means PEOs are already updating their systems to reflect this change, as a convenience to the businesses they serve. While the federal minimum wage information, provided by the US Department of Labor – Wage and Hour Division, and is to be observed under the Fair Labor Standards Act (FLSA), each state minimum wage supersedes these rates in order to provide the highest standard of living for employees.
What You Need to Know About the State Minimum Wage Rate Increase in Your State
Certain states will experience a minimum wage increase starting on January 1, 2014. SourceOne Partners is a PEO that serves Florida, New Jersey, New York, and Pennsylvania; so we are focusing on providing you with the information for these regions. If you are outside of these areas, you may reference your state Department of Labor website for more information. Here’s what you need to know about new minimum wages if you are an employer in the following states.
Minimum Wage in Florida
In Florida, including South Florida where SourceOne Partners is located, your state minimum wage changes to $7.93 per hour for non-tipped employees and $4.91 for tipped employees. This is effective as of January 1, 2014, so you will want to prepare your first of the year payroll for this change.
Minimum Wage in New Jersey
Effective with your first payroll starting with January 1, 2014, your state minimum wage is $8.25 per hour. Employers who are subject to the FLSA must pay $2.13 per hour for tipped employees. SourceOne Partners serves this state and the company’s partners are already updating their systems to reflect the new rates.
Minimum Wage in New York
Effective December 31, 2013, your state minimum wage goes from $7.25 per hour up to $8.00 per hour. This is good news for the millions of New Yorkers who are fighting for a wage increase to keep up with the standards of living here.
Minimum Wage in Pennsylvania
Despite pressure from voters, Pennsylvania is not going to experience a state minimum wage increase during this time period. The last time the state minimum wage was increased was in 2008, from $5.15 an hour to $7.15 per hour. Therefore, as of now, PA employers will still use the federal minimum wage of $7.25 per hour to pay workers.
What You Can Do Now to Prepare for the State Minimum Wage Changes for 2014
If your small business in any of the above states needs to change your employees’ hourly rates, you are encouraged to do so in advance of the deadlines so that your payroll processing reflects the new rates for the effective dates. Enter the new minimum wage rate to your pay rate fields in your payroll management software with the effective dates. Remember that January 1, 2014 is a holiday, so you will be paying holiday pay at the new state minimum wage for eligible employees.
If you are currently outsourcing payroll administration through SourceOne Partners, they are aware of these changes and will assist you with any questions you may have. You can always review the minimum wage in Florida, New York, New Jersey, or Pennsylvania with your PEO representatives to see how this will affect your HR budget for 2014. Your PEO should not be charging you any additional fees for this update.
Take a moment to ensure that you have the most recent FLSA employee wage information posters displayed in your workplace. If they are out of date, you will need to print out or order new copies to be hung in central employee areas (such as the break room), and in the payroll department in order to meet government wage regulations.
Manage Your Payroll with SourceOne Partners
Need assistance with outsourcing your payroll to ease the headache of doing it yourself? SourceOne Partners provides PEO & payroll solutions for any small business. With offices in South Florida and New Jersey, we can help you find a solution to better manage your payroll services, employee benefits and company taxes so that you can save time, money and avoid the penalties of non-compliance. Please call 561-674-0748 to speak with a payroll expert or click here to contact us online.