Is your business located in a state or municipality that increased the minimum wage on January? If so, you will want to reflect the change in your payroll software and related documents.
Here are the states that are increasing the minimum wage in 2018:
18.5 Washington DC’s minimum wage will also increase to $12.50, a one-dollar increase from the current $11.50 rate.
In addition to state minimum wage hikes many cities and municipalities will increase their minimum wage rate — (Note: Most increases will not take effect until July 1)
Employers in states like New York and California will have the challenge of keeping tracking of several different wage rates depending on where the employee is located.
You can find a detailed list of city and municipal increases here.
A new year is also a great time to review your recordkeeping. Using our list below, take a moment and make sure your recordkeeping is still in compliance.
We have provided a quick checklist of payroll-related record retention best practices to share with your staffers:
Keep 7 years:
Cancelled payroll checks
Cancelled checks for payroll taxes
Electronic payment records
Time cards and daily time reports
Payroll tax returns
Keep 3 years:
Internal payroll reports
Form I-9 (from date of termination)
Keep 2 years:
All payroll-related correspondence
All IRS or DOL correspondence
IRS or state adjustments
These tips should help you jump start your payroll commitments for the new year and ensure you remain compliant and stay up to date with your payroll.