Tuesday December 30th, 2014
Many of us ring in the New Year with resolutions to change or improve our life. Although it’s not a personal resolution, many states are raising the 2015 minimum wage as a result of either inflation or legislative action, affecting workers nationwide.
New York’s minimum wage will increase to $8.75 per hour on December 31, 2014. Effective
January 1, 2015, these states will have minimum wage increase:
Two other states, Delaware and Minnesota, will have increases later in 2015. While these increases should help millions of workers, there are still 29 states whose minimum wage is still below the $7.25 federal minimum.
Recently passed legislation, retroactive for 2014, made the monthly transit passes and van pool benefits match the $250 qualified parking benefit. Since this change is retroactive, employers may need to correct the taxable fringe benefits and amend payroll. Similar to the 2012 retroactive adjustment, the IRS may possibly require employer refunds for excess 2014 FICA taxes and a W-2 correction to the income amount for federal taxes.
On January 1, 2015, the transit limit will reduce to $130 a month, while qualified parking will remain at $250 a month.
The 2015 fringe benefit limits: