What Business Owners Need to Know About Paying Their Employees in 2021
Year-end offers entrepreneurs the chance to plan ahead and get prepared for required financial or administrative changes. According to state and federal laws, businesses with employees are required to pay their workers a minimum amount. Updates to these minimum pay standards are coming on January 1, 2021! As a business owner, it is vital that you remain in compliance with minimum pay standards and it is up to you to make adjustments when those standards change. Ventures is here to help! In this blog post, we will highlight:
· Minimum pay standards in Washington State
· Important dates and deadlines
· How to avoid compliance pitfalls
What is Minimum Pay?
Federal and state laws mandate that employers pay their workers a minimum pay amount. That amount can also be impacted by local requirements. Business owners must make necessary adjustments whenever these minimum pay standards change. Many of the most important changes are tied to the New Year.
Why is Minimum Pay Important?
Compliance is an obligation of every business owner. Worker pay complaints are one of the primary reasons that companies come into contact with monitoring agencies. Proactive awareness can preempt difficulties from failures, and the associated fines.
Reminders for Minimum Pay 2021
The following changes will occur or take effect on January 1, 2021.
- The state minimum wage will rise to $13.69 per hour.
- Local minimum wage rates will also increase:
- The minimum salary thresholds for exemption from the Minimum Wage Act (including overtime pay, Washington paid sick leave, and associated protections against retaliation for its usage) will increase to the following rates:
o Small Employers (1 – 50 employees): $821.40 per week, or $42,712.80 per year
o Large Employers (51+ employees): $958.30 per week, or $49,831.60 per year
Remember, it’s every businesses obligation to ensure that their workers are paid appropriately and in the right amount. The Minimum Pay rate reminders should be consulted by every company! The Ventures Business Coaching Team is available to assist.
Check your workers’ pay rates before December 31st, 2020 so that you can make sure they’re receiving the Minimum Pay rates.
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