The legislatures of MA and RI have been a bit busy this summer. Here’s some important information for my Rhode Island and Massachusetts friends:
Effective January 1, 2015, the Rhode Island minimum wage will increase to $9/hour from $8/hour. The minimum cash wage for tipped employees will remain $2.89/hour. This means that the tip credit will increase to $6.11/hour from $5.11/hour.
Many changes coming to the minimum wage, minimum cash wage and also to the Unemployment Insurance taxable wage base..
The highlights are:
The Act raises the minimum wage, in increments, to $11/hour by 2017 and also increases the unemployment insurance (UI) taxable wage base and freezes UI tax rates for employers for three years effective January 1, 2015.
Effective January 1, 2015, the minimum wage will increase to $9/hour. It will increase to $10/hour effective January 1, 2016 and to $11/hour effective January 1, 2017.
Interesting to note that MA will have the highest state minimum wage in the nation in 2017 assuming no other state increases their minimum wage by that point.
Also effective, January 1, 2015, the minimum cash wage for tipped employees will increase to $3/hour from the current $2.63/hour. This means that the tip credit will increase to $6/hour from $5.37/hour.
Effective January 1, 2016, the minimum cash wage will increase to $3.35/hour, meaning that the tip credit will increase to $6.65/hour.
Effective January 1, 2017, the minimum cash wage will increase to $3.75/hour, meaning that the tip credit will increase to $7.25/hour.
- The UI taxable wage base will increase to $15,000 from the current $14,000 on January 1, 2015.
Not sure what the tip credit is??? Click here!!!
Here’s the full text of each:
For more information on this or anything related to payroll, don’t hesitate to contact me!!
ConnectPay Payroll Services
2352 Main Street, Suite 303
Concord, Ma 01742