Tax & Accounting Blog

Minimum Wage Changes for 2017

Accounting Firms, CS Professional Suite Payroll Solutions, Payroll November 2, 2016

Several states and localities have announced minimum wage changes for 2017.

Twenty-five states, plus the District of Columbia, index their minimum wages to rise automatically with the cost of living. Four more states, also including the District of Columbia, will index minimum wage increases annually beginning in future years: Alaska (2017), Washington, D.C. (2017), Minnesota (2018), Michigan (2019) and Vermont (2019).

The following table shows the state minimum wages (as well as some localities) and 2017 changes and proposals. This list changes daily, so make sure to keep an eye out for changes.

State City 2017 Minimum Wage
AK $8.75
AL FED ($7.25; $9.50/$10.10 proposed)
AR $7.50; $8.50 (new) 2017
AZ $8.05; $10 (proposed) 1/1/17
CA $10; $10.50 (new) 2017 >25 employees
Oakland $12.25
San Diego $10.50; $11.50 (new) 2017; $11.05
San Francisco $13; $14; $15 (7/16, 17, 18)
San Jose Berkeley – NEW 10.30; new wages: $10.40 1/1/17, $11 .00, $12.53 10/1/16, $13.75 10/1/17, $15 10/1/18
San Mateo 12.25; $12 (proposed) 1/1/17
California computer professionals Overtime: $41.85 2016, $42.39 2017
CO 8.31; $8.56 (proposed) 1/1/17
CT $9.60
DC $11.50 7/1/2016
DE $8.25
FL $8.05; $8.10 (new) 1/1/17
GA $5.15 (state has lower minimum wage than FED, but FED prevails)
HI $8.50 2016; new wages: $9.25 2017, $10.10 2018
IA $7.25
ID $7.25
IL $8.25
IN $7.25
KS $7.25
KY $7.25
LA FED ($7.25; $9.50/$10.10 proposed)
MA $9.00 ; new wages: $10.00 1/16, $11.00 1/17 (needs governor signing)
MA (working on Sundays) $12.00
MD $8.75 (7/1/16); new wages: $9.25 (7/1/17), $10.10 (7/1/18)
ME $7.50; $9 (proposed) 1/1/17
Portland new wages: $10.10,   $10.68 1/1/17
MI $8.50 1/1/16; new wages: $8.90 1/1/17, $9.25 1/1/18
MN $9.50 8/1/16; $7.75 (new) <$500,000 gross sales; $10 (proposed) 1/1/17
MO $7.65
Kansas City $8.50; $9.00 1/1/16
St. Louis new wages: $10.00 1/1/17, $11.00 1/1/18
MS FED ($7.25; $9.50/$10.10 proposed)
MT $8.05; $8.15 (new) 1/1/17
NC $7.25
ND $7.25
NE $9.00 (proposed)
NH $7.25
NJ $8.38; $8.44 (new) 1/1/17
NM $7.50 ($1.00 less healthcare)
Albuquerque $8.75; $7.75 with healthcare
Santa Fe $10.84
NV $8.25, $7.25
NY new wages: $9.00 2016, $9.70 2017 (NYC higher)
New York City – living wage 10/14 new wages: $13.13 without health insurance, $11.50 with health insurance
Rochester new wages: $12.81 without health insurance, $11.47 with health insurance
OH $8.10, $7.25 (if revenue is <$295,000); new wages: $8.15 1/1/17, $7.25 <299,000
OK $7.25
OR $9.25
PA $7.25
PR $7.25
RI $9.60
SC FED ($7.25; $9.50/$10.10 proposed)
SD $8.55; $8.65 1/1/17
TN FED ($7.25; $9.50/$10.10 proposed)
TX $7.25
UT $7.25
VA $7.25
VT $9.60; new wages: $10.00 2017, $10.50 2018
WA $9.47 2016; $9.53 (new) 1/1 17
Seattle new wages: $13-12 2016, $15-13 2017 (if the business has <500 employees)
WI $7.25
WV $8.75 1/1/16
WY $5.15 (state has lower minimum wage than FED, but FED prevails)

 

Many additional localities have pending legislation for minimum wage changes so stay on the lookout for more increases. Minimum wage rules are always a moving target, so it’s important to watch for changes that affect your and your clients’ companies.

The tables above are regular minimum wage rules. Many states have tipped employee minimum wage rules and amounts that are lower. One notable exception is California, which does not have a lower minimum wage for tipped employees. And one industry to watch is restaurants—across the country, more restaurants are eliminating tips and increased wages to staff to state regular minimums.

If your firm uses Accounting CS® Payroll, the Payroll Form and Filing Information portlet on the Home dashboard provides the following information: payroll form availability, form due dates, form filing addresses, tax payment information, agency contact information and other payroll resources. Learn more with a detailed list of recent updates to payroll tax rates, limits and minimum wage updates.