W2 Issues/Concerns


Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Eighteen states, DC increase minimum wage in 2018

The New Year got off to a fantastic start for hourly workers in 18 states and the District of Columbia after new laws increasing the minimum wage were enacted January 1.

The states that increased the minimum wage are

  • Alaska: $9.84 (up from $9.80)
  • Arizona: $10.50 (up from $10.00)
  • California: $11.00 (up from $10.50)
  • Colorado: $10.20 (up from $9.30)
  • Florida: $8.25 (up from $8.10)
  • Hawaii: $10.10 (up from $9.25)
  • Maine: $10.00 (up from $9.00)
  • Maryland: $10.10 (up from $9.25)Michigan: $9.25 (up from $8.90)
  • Minnesota: $9.65 (up from $9.50)
  • Missouri: $7.85 (up from $7.70)
  • Montana: $8.30 (up from $8.15)
  • New Jersey: $8.60 (up from $8.44)
  • New York: $11.10 for most of the state, although in Long Island and Westchester Counties the rate increased to $10.00 (up from $9.70)
  • Ohio: $8.30 (up from $8.15)
  • Rhode Island: $10.10 (up from $9.60)
  • Vermont: $10.50 (up from $10)
  • Washington: $11.50 (up from $11)
  • Washington DC: $12.50 (up from $11.50)

The revised minimum wage applies to the majority of employers, but there are a few exceptions for each state. Further, several cities and municipalities have also enacted their own legislation governing minimum wages, so companies that operate in multiple locations may have to keep track of multiple different wage rates depending on where their workers are located.

Abel HR’s payroll experts make sure your business is always up date on any changes in wages, withholdings or taxes.

From an HR perspective, a sweeping change in pay such as this serves as a good opportunity to remember to store enough documentation on employees and their pay structures to keep you audit prepared. HR Morning, meanwhile, has provided the following handy checklist of current payroll-related record retention best practices:

Keep 7 years:

  • cancelled payroll checks
  • cancelled checks for payroll taxes
  • electronic payment records
  • payroll journal
  • time cards and daily time reports
  • garnishments
  • employment agreements
  • payroll tax returns

Keep 3 years:

  • internal payroll reports
  • Form I-9 (from date of termination)

Keep 2 years:

  • payroll-related correspondence

Keep forever:

  • All IRS or DOL correspondence
  • financial statements
  • general ledger
  • Form 5500
  • IRS or state adjustments

However, if you have any lingering concerns about which documents you should keep or HR compliance and administration, do not hesitate to reach out to us here at Abel or call 800-400-1968.


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