REMINDER! California’s Minimum Wage increases on July 1st
California has increased its minimum wage in a two-step process. In the first step California employers are required to pay a minimum wage of $9.00 per hour effective July 1, 2014. The second step raises the minimum wage to $10.00 per hour effective January 1, 2016. The new California Minimum Wage Posting required to be posted by all employers can be found at http://www.dir.ca.gov/wpnodb.html. The new posting must be displayed beginning July 1, 2014.
Getting off on the right foot with managing payroll can be a daunting task to some employers/business owners due to its detailed nature. We feel that if you are equipped with the right information and best practices, you can easily set the correct tone for the rest of the year and run a stress-free and stream-lined payroll system.
First and most importantly, business owners should be aware of their payroll schedule for each employee. Sound simple? Sure, but extremely important to get right. Running careless payroll can lead to costly penalties with the IRS or even worse, expensive litigation with a disgruntled employee. Knowing the ins and outs of your employees pay rates, exemption status (exempt vs. non exempt employees), overtime rules, structure of pay(e.g. bi-weekly, semi-monthly, monthly), and withholding taxes are a few details to be aware of when you as the business owner, are cutting checks.
Payroll has grown far beyond the basic payment of money from employer to employee. There are numerous rules and regulations that must be followed, taxes and filings to consider, garnishments and deductions…and all of these must be done in a timely manner. Payroll can be extremely tedious and frustrating, so it’s no wonder that many businesses outsource their payroll or utilize an online payroll provider. The fees and fines associated with violations of payroll regulations are expensive. Below, we list five common payroll mistakes that companies should be aware of:
As we close in on year end, we at MMC are looking forward to prepare for the changes in payroll that will occur in 2012. Although the numbers may seem small, they do impact your take home amounts overall.
In 2011, we saw the California State Disability rate go to 1.2%. In 2012, it will be reduced to 1.0%, which will result in a slight increase in employee’s paychecks. However, this will be offset by the return of the social security rate to the original 6.2%. If you recall, in 2011, the social security rate for employees went down to 4.2%. Unless legislation is passed within the month of December, the rate will return to 6.2%.