On Friday, December 14, 2018, Governor Rick Snyder signed revisions to both the Mandatory Paid Medical Leave Act and the Improved Workforce Opportunity Wage Act (minimum wage). These revisions gradually phase in upcoming increases in minimum wage rate and enact mandatory paid sick leave.
The minimum wage rate will now increase from $9.25 per hour to $9.45 per hour in 2019, with annual increases thereafter up to $12.05 in 2030. The minimum wage rate for tipped employees will remain at 38% of the hourly minimum wage, increasing to $4.58 per hour by 2030.
Under the signed revision, the Paid Medical Leave Act only applies to employers who employ 50 or more employees. Qualified employees will accrue one hour of paid sick leave for every 35 hours worked (may be limited to 40 hours per year). Time provided can include vacation days, personal days or paid time off to determine an employer’s compliance with the law. The revisions also exempt certain employees such as individuals exempt from overtime requirements under the FLSA, US government employees, and certain part-time, seasonal and variable hour employees.
Both revised Acts as signed will become effective March 29, 2019.
New 2019 IRS Form W-4: The IRS released a version of the 2019 Form W-4 and instructions that is similar to the 2018 version. Initially the plans called for substantial revisions to the form, but after feedback from payroll and tax communities, the IRS decided to postpone the significant makeover until the 2020 tax year. The Form W-4 Deductions, Adjustments, and Additional Income Worksheet has been updated to reflect the increase in the standard deductions for 2019. The 2019 W-4 and instructions can be accessed at ww.irs.gov/pub/irs-pdf/fw4.pdf.
If you questions about how these changes could affect your business, please feel free to contact one of our CPAs at (616) 642-9467 or request a complimentary accounting consultation.
By: Beth Thomas
Photograph: BreAnn Bennett