Here are a couple quick updates on changes to 1099 non-employee compensation reporting and delay of Michigan minimum wage increase. Please note important filing dates and related penalties:
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Effective January 1, 2020, the Department of Labor updated the thresholds for workers to be considered exempt from overtime.
Changes were also made to Form W-4, the Michigan minimum wage and the business mileage rate. Following is a summary of some of the changes employers should be aware of.
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.
On November 22, 2016, U.S. District Judge Amos Mazzant from the Eastern Texas district issued an injunction to disallow the application of the Department of Labor’s March 23, 2016 “Final Rule” ruling on overtime requirements for salaried workers.
The Final Rule would have raised the minimum salary level to qualify for exempt employee status (EAP) to $913 per week ($47,476 annually), effectively requiring employers to pay overtime to many salaried workers.