Tax & Accounting Blog

Minimum Wage Changes Announced for 2015

CS Professional Suite Payroll Solutions September 10, 2014

Minimum wage increases are one of the hottest topics in payroll this year. They’ve produced a steady stream of new proposals and a great deal of haggling in state legislatures. And now that the year is nearly over, we’ve seen definitive announcements in several states. They are:

Michigan: $8.15 per hour effective September 1, 2014
Connecticut: $9.15 per hour, effective January 1, 2015
Delaware: $8.25 per hour, effective June 1, 2015
Hawaii: $7.75 per hour, effective January 1, 2015
Massachusetts: $9.00 per hour, effective January 1, 2015
Maryland: $8.00 per hour, effective January 1, 2015
Minnesota: $9.00 per hour, effective August 1, 2015
New York: $8.75 per hour, effective January 1, 2015
Rhode Island: $9.00 per hour, effective January 1, 2015
Vermont: $9.15 per hour, effective January 1, 2015
Washington: $9.54 per hour, effective January 1, 2015
(different rules apply in Seattle)
Washington, D.C.: $10.50 per hour, effective July 1, 2015
West Virginia: $8.00 per hour, effective January 1, 2015

For many states, the changes above are the first step in a series of gradual increases, so check back often for the latest information. The Department of Labor website http://www.dol.gov/ is a good place to look, as is Thomson Reuters Checkpoint®.

Prenoting Change Coming on September 19

There’s a big change coming to prenoting rules from The National Automated Clearinghouse Association (NACHA). They’re shortening the waiting period required before live entries can be transmitted following a prenote from six banking days to three banking days, effective September 19, 2014. This could be a first step toward account validation for the ACH Network.

As is always the case in payroll, more changes and proposals are in the works. So stay tuned for more updates over the coming months.