Payroll
Minimum Wage Updates for 2017
Let’s review minimum wage pay rates. There’s the federal minimum wage of $7.25, as well as state minimum wage, local minimum wage and tipped minimum wage rates.
Apr. 12, 2017
From the Thomson Reuters blog.
Let’s review minimum wage pay rates. There’s the federal minimum wage of $7.25, as well as state minimum wage, local minimum wage and tipped minimum wage rates.
Below is a list of minimum wages by state, as well as tipped minimums. Please note that local rates can affect the states if the locals are higher. Twenty-seven states had minimum wage changes effective in 2017 — and you can expect more changes coming in the future.
| Taxing Authority | Minimum Wage Rate | Minimum Cash Wage |
|---|---|---|
| Federal | $7.25 per hour | $2.13 per hour |
| AK | $9.80 per hour, effective 1-1-17 | $9.80 per hour, eff. 1-1-17 |
| AL | N/A | N/A |
| AR | $8.50 per hour, eff. 1-1-17 | $2.63 per hour |
| AZ | $10.00 per hour, eff. 1-1-17 | $7.00 per hour, eff. 1-1-17 ($5.05 per hour in 2015 and 2016) |
| CA | $10.50 per hour for employers with 26 or more employees, eff. 1-1-17; $10.00 per hour for employers with fewer than 26 employees. $10.00 per hour in 2016 for all employers. | $10.50 per hour for employers with 26 or more employees, eff. 1-1-17; $10.00 per hour for employers with fewer than 26 employees. $10.00 per hour in 2016 for all employers. |
| CO | $9.30 per hour, eff. 1-1-17 ($8.31 per hour in 2016) | $6.28 per hour, eff. 1-1-17 ($5.29 per hour in 2016) |
| CT | $10.10 per hour, eff. 1-1-17 | $6.38 per hour, eff. 1-1-17, for service employees (waitpersons) ($6.07 per hour in 2016) |
| DC | $11.50 per hour | $2.77 per hour |
| DE | $8.25 per hour | $2.23 per hour |
| FL | $8.10 per hour in 2017 | $5.08 per hour in 2017 |
| GA | $5.15 per hour | N/A |
| HI | $9.25 per hour, eff. 1-1-17. Increases to $10.10 per hour, eff. 1-1-18. | $8.50 per hour in 2017 |
| IA | $7.25 per hour | $4.35 per hour |
| ID | $7.25 per hour | $3.35 per hour |
| IL | $8.25 per hour ($10 per hour for state contractors, subcontractors and prospective vendors, eff. 1-12-15) | $4.95 per hour |
| IN | $7.25 per hour | $2.13 per hour |
| KS | $7.25 per hour | $2.13 per hour |
| KY | $7.25 per hour | $2.13 per hour |
| LA | N/A | N/A |
| MA | $11.00 per hour, eff. 1-1-17 | $3.75 per hour, eff. 1-1-17 |
| MD | $8.75 per hour | $3.63 per hour |
| ME | $9.00 per hour eff. 1-7-17 ($7.50 per hour in 2016) | $5 per hour, eff. 1-1-17 ($3.75 per hour in 2016) |
| MI | $8.90 per hour, eff. 1-1-17. Increases to $9.25 per hour, eff. 1-1-18. | $3.38 per hour, eff. 1-1-17. Increases to $3.52 per hour, eff. 1-1-18. |
| MN | Large employers (gross volume of sales of $500,000 or more are required to pay $9.50 per hour, eff. 8-1-16 (previously, $9.00 per hour) | Same minimum wage rate as non-tipped employees. |
| MO | $7.70 per hour, eff. 1-1-17 | $3.85 per hour, eff. 1-1-17 |
| MS | N/A | N/A |
| MT | $8.15 per hour in 2017 ($8.05 per hour in 2015 and 2016) | $8.15 per hour in 2017 ($8.05 per hour in 2015 and 2016) |
| NC | $7.25 per hour | $2.13 per hour |
| ND | $7.25 per hour | $4.86 per hour |
| NE | $9.00 per hour, eff. 1-1-16 | $2.13 per hour |
| NH | $7.25 per hour | $3.26 per hour |
| NJ | $8.44 per hour, eff. 1-1-17 | $2.13 per hour |
| NM | $7.50 per hour | $2.13 per hour |
| NV | $8.25 per hour ($7.25 per hour for employees who receive qualified health benefits | $8.25 per hour ($7.25 per hour for employees who receive qualified health benefits) |
| NY | Effective 12-31-16, $11 per hour for NYC employers with 11 or more employees (large employers) and $10.50 per hour for NYC employers with 10 or fewer employees. Rate scheduled to increase to $15 per hour for large employers on 12-31-18 and small employers on 12-31-19. | Varies by industry (see wage orders for the building service industry, restaurant industry, hotel industry, farm workers and miscellaneous industries and occupations) |
| OH | $8.15 per hour, eff. 1-1-17 ($8.10 per hour in 2015 and 2016) | $4.08 per hour in 2017 ($4.05 per hour in 2015 and 2016) |
| OK | $7.25 per hour | $3.625 per hour |
| OR | $9.25 per hour (eff. 7-1-16, increases to: $9.75 per hour everywhere except in non-urban counties, and to $9.50 per hour in non-urban counties) | $9.25 per hour (eff. 7-1-16, increases to: $9.75 per hour everywhere except in non-urban counties, and to $9.50 per hour in non-urban counties) |
| PA | $7.25 per hour | $2.83 per hour |
| RI | $9.60 per hour, eff. 1-1-16 | $3.39 per hour, eff. 1-1-16, and increases to $3.89 per hour, eff. 1-1-17 |
| SC | N/A | N/A |
| SD | $8.65 per hour, eff. 1-1-17 ($8.55 per hour in 2016) | $4.325 per hour, eff. 1-1-17 ($4.275 per hour in 2016) |
| TN | N/A | N/A |
| TX | $7.25 per hour | $2.13 per hour |
| UT | $7.25 per hour | $2.13 per hour |
| VA | $7.25 per hour | $2.13 per hour (no minimum cash wage is required if the employer is not subject to federal wage hour law) |
| VT | $10.00 per hour, eff. 1-1-17. Increases to $10.50 per hour, eff. 1-1-18. | $5.00 per hour, eff. 1-1-17 |
| WA | $11.00 per hour in 2017 ($9.47 per hour in 2015 and 2016) | $11.00 per hour in 2017 ($9.47 per hour in 2015 and 2016) |
| WI | $7.25 per hour; opportunity employees may be paid $5.90 per hour | $2.33 per hour |
| WV | $8.75 per hour, eff. 1-1-16 | $2.62 per hour, eff. 1-1-16 |
| WY | $5.15 per hour | $2.13 per hour |
Want more resources? Thomson Reuters myPay Solutions payroll services for accountants keeps clients in compliance with these rates and provides accurate payrolls, so you and your client don’t have to worry about it.
In addition, Thomson Reuters Accounting CS Payroll includes an unbeatable collection of compliance resources, including an extensive library of federal, state and local forms — plus, it’s regularly updated for payroll tax rates, limits and minimum wage rates. Whether you’re using it for after-the-fact payroll services or for all of your clients’ payroll needs, Accounting CS Payroll Compliance is an all-inclusive, automated system that will help you stay in compliance with tax laws and reporting requirements.
Check out this table for updates for payroll tax rates, limits and minimum wage rates that may affect your firm and your clients, as well as the Accounting CS version and date on which these changes were implemented in the application.
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James Paille CPP is the Director of Operations for Thomson Reuters myPay Solutions. He has been an executive manager in the payroll service industry for more than 30 years, specializing in managing multi-location offices. Jim is President of the American Payroll Association as well as a member of the National Speakers Bureau and chair of the CPP Certification Review Panel. He holds a Bachelor of Science in Accounting from St. John Fisher College in Rochester, NY.