Some States Increase Minimum Wage

Effective January 1, 2018, 18 states and 20 municipalities across the country increased minimum wage rates. Some of these increases are the result of recent legislation. Many of these increases are tied to inflation so the impact will be negligible; however, business owners must still take steps to comply. The states with increased minimum wage rates are:

State 2017 Minimum Wage 2018 Minimum Wage Increase
AK $9.80 $9.84 $0.04
AZ $10.00 $10.50 $0.50
CA $10.50 $11.00 $0.50
CO $9.30 $10.20 $0.90
FL $8.10 $8.25 $0.15
HI $9.25 $10.10 $0.85
ME $9.00 $10.00 $1.00
MI $8.90 $9.25 $0.35
MN $9.50 $9.65 $0.15
MO $7.70 $7.85 $0.15
MT $8.15 $8.30 $0.15
NJ $8.44 $8.60 $0.16
NY $9.70 $10.40 $0.70
OH $8.15 $8.30 $0.15
RI $9.60 $10.10 $0.50
SD $8.65 $8.85 $0.20
VT $10.00 $10.50 $0.50
WA $11.00 $11.50 $0.50

In total, 29 states and many municipalities now have minimum wage rates higher than the federal minimum wage of $7.25.

Business owners should ensure that their payroll preparers are aware of these changes and that the software used to compute employee payroll checks has been updated. Contact us for more information.

About the Author(s)

Rex is a Principal of HBK CPAs & Consultants and directs the firm’s Dealership Group. He has worked extensively in the dealership industry since 1984 as a department manager, a general manager and an owner, as well as providing tax, accounting and operational consulting services exclusively to dealers as an independent CPA.

This experience includes working closely with hundreds of dealers from coast-to-coast since 1987 on creative tax planning and financial statements issues. He provides clients with a wide range of transaction work services, and consults for them in specialty areas such as operations, government regulatory compliance, valuations and M&A feasibility studies.

Rex is active in many professional associations. He is the current Chairman of the BDO Dealership Industry Group, contributes articles and commentary to dealership industry publications, is frequently called upon to speak to industry associations and conferences, provides expert testimony, and is regularly quoted by industry and the general media.

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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