There are some big changes headed our way when it comes to salaries & wages. Here’s what you need to know to stay in the loop!
Earlier this year, Connecticut lawmakers passed, “An Act Increasing the Minimum Fair Wage,” which raises the state’s minimum wage. Some changes have already been implemented this year – minimum wage increased from $10.10 to $11.00 on October 1, 2019. The increase will continue to:
- $12.00 on September 1, 2020;
- $13.00 on August 1, 2021;
- $14.00 on July 1, 2022; and
- $15.00 on June 1, 2023.
Similar changes are also in effect for tipped employees working in Connecticut. The minimum cash wage paid to tipped employees working in the hotel and restaurant industry is stagnant at rates of $8.23 an hour for bartenders and $6.38 an hour for all other tipped employees. In accordance with these changes, the tip credits increased to $2.77 an hour for bartenders and to $4.62 an hour for all other tipped employees.
Connecticut is not the only state undergoing adjustments to salaries and wages. On a Federal scale, the following changes will be made effective January 1, 2020:
- The minimum salary threshold will rise to from $455 to $684 per week, which amounts to $35,568 per year.
- Employees who currently earn between $23,660 and $35,568 will be entitled to overtime pay.
- The annual minimum compensation for highly compensated employees will increase from $100,000 to $107,432.
Staying up-to-date with all of these changes can be difficult, especially as a business owner with employees. At Alfano & Company, we provide accounting services, including payroll processing, that can help you stay informed of information pertaining to your industry. Contact us for a consultation to see how we can be of assistance.