Businesses with employees in Seattle should be preparing to take the new minimum wage into account. Your particular minimum depends upon the size of your operation, and the benefits that you offer.
Large employers, defined as employers with over five hundred employees, will be expected to pay a higher minimum than employers with five hundred or fewer employees. If you pay towards medical benefits, your minimum is $12.50 per hour. If you do not pay towards medical benefits, your minimum is $13.00 per hour.
Many small employers will be expected to pay a minimum of $12.00 per hour. However, if the employer pays $1.50 per hour towards medical benefits, or if a given employee earns at least $1.50 per hour in tips, the minimum is $10.50 per hour.
If you live in the City of Tacoma, your minimum wage is also on the rise as the following:
- February 1st, 2016: $10.35 per hour.
- January 1st, 2017: $11.15 per hour.
- January 1st, 2018: $12.00 per hour.
- January 1st, 2019: Starting on this date, the minimum will continue to be adjusted annually, according to the rate of inflation.
Please visit City of Tacoma website for the full detail.
This minimum applies to most people who work for 80+ hours per year within the city limits of Tacoma.
Additionally, employees who work for 80+ hours in a calendar year are guaranteed a certain amount of paid time off every year. They earn an hour of such time for every 40 hours worked within Tacoma, up to 24 hours. Employees have the option of carrying forward up to 24 hours of unused paid leave, and can use up to 40 hours in a single hear. However, they can only use their paid leave 180 days after the start of their employment.
Should you require any further information on your legal obligations this coming year, or if you are looking for additional help keeping your business’s finances in order, consult Seattle CPA Alisa Na during normal business hours.
*All information presented in this article may subject to change with or without notice. Please check with your city department for the detail.