Happy New Year! We are sending out this important notice to remind you of something important to take note of!
There are two minimum wage changes addressed in this email. Because localities are increasingly imposing individual rules, we encourage you to seek out local changes that apply to your business that are not addressed here. California Minimum Wage Increase
HOURLY EMPLOYEES: On January 1, 2023, the California minimum wage for all employers is 15.50 per hour.
SALARIED / EXEMPT EMPLOYEES: An employee must earn no less than two times the state's minimum wage for full-time work to meet this initial requirement of the exemption test. As of January 1, 2023, employees in California must earn an annual salary of no less than 64,480 to meet this threshold requirement.
The official link to this notice is click here. San Diego Minimum Wage Increase
HOURLY EMPLOYEES: On January 1, 2023, the City of San Diego minimum wage for all employers is 16.30 per hour.
SALARIED / EXEMPT EMPLOYEES: See the State minimum wage info, above. The official link to this notice is click here. To see if you are in the city boundaries, and for updated City of San Diego labor law posters click here.
Procedure for Payroll:
At Pink Payroll, we do not automatically change your employee's wages, as each company's situation is different, and most of our clients now have online access. We recommend you do one or a combination of the following: 1) Change your employee's wages to the higher wage, online, as applicable, before your first paycheck dated Jan 1 or after, or if the payperiod (worked days) include any days in January.
2) If you want to split hours between wages (eg lower rate thru 12/31 and higher rate after Jan 1), we will create a temporary wage code to hold the lower rate, while the new rate processes actual hours. First, change the rate for all employees to the new, higher rate. Ask us to set up a code(s) for the old rate (example Hrly15, Hrly 15.25 - as many as you need), then you can input the hours for each rate for each employee. A common question is, does the minimum wage apply to any paycheck dated after January 1, or after the date in effect? Federal laws, and also California, only require you to increase the minimum wage on the pay period - dates worked - after the wage change. So, if your employees worked a bit in each year, you are only required to increase the wage for dates worked in the new year. We recommend that you review the pay rates of your employees to ensure compliance with the new minimum wage rates. If you need HR services, a verbal explanation of these laws or even more information, please ask us for our paid HR Service contact. We hope this information was of value in assisting you to stay on top of things.
ERC Tax Credits - for those of you that have received a PPP loan but not ERC credits, we can assist. We have obtained millions for our clients in the form of an IRS check rebate, and can review your situation. There is a deadline, so don't hesitate. If you know another business owner, please refer them as we also pay referral fees. Just reply to this email or call us.
Thank you, and we look forward to keeping you updated this year!
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