Minimum wage reminder

The minimum wage changed on January 1st to $10.50/hour in California.  Many other states schedule their rate changes for January 1st as well.

The DIR has a FAQ page for the minimum rate change in California that you may want to review.

To double check that you have the correct minimum wage rate for 2017, go to Payroll->Setup->State Tax Rates.  The state tax rates for 2017 should automatically be displayed (assuming you have closed 2016 already).  Click on the Minimum Wage tab page:

minwagesettings

The minimum wage settings should show the previous minimum wage rate and the new minimum wage.  The previous minimum wage will be used for minimum wage verification of piecework wages for any days worked in the prior year.

Also, as explained in the Year End Update help file, several states have different minimum wages that apply depending on what region/city you are located in.  In these cases, we are not able to determine which minimum wage rate may apply to your company.  In these cases you may need to override the minimum wage rate provided in the state tax rate updates to use the rate that applies to your operation.

The Year End Help file contains additional helpful information about minimum wage rate changes.  To view this information, go to the Help->Year End Help option in the program and click on the Minimum Wage topic under Year End Update 2016 in the table of contents.

 

 

 

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