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Ask A CPA - Business Start-ups

What Is The Current Year'S Minimum Hourly Wage Amount?

Although the 2012 federal minimum wage will remain unchanged at $7.25 per hour, six states have announced that their minimum wage will increase on January 1, 2012. Arizona: announced a 30-cent per hour increase, from $7.35 to $7.65 per hour; an employer can pay a tipped employee a wage up to $3.00 per hour less than the minimum wage – $4.65 per hour. Florida: announced a 36-cent per hour increase, from $7.31 to $7.67 per hour; tipped employees must be paid at least $4.65 per hour. The minimum wage was previously increased six cents per hour on June 1, 2011. Montana: The announced a 30-cent per hour increase, from $7.35 to $7.65 per hour. Ohio: announced a 30-cent per hour increase, from $7.40 to $7.70 per hour; the minimum wage for tipped employees increases 15 cents per hour, from $3.70 to $3.85 per hour. Additionally, employers can pay the federal minimum wage to minors ages 14 & 15-years old, and adults if the business’s gross revenue is $283,000 per year (previously $271,000). Oregon: announced a 30-cent per hour increase, from $8.50 to $8.80 per hour. Washington: announced a 37-cent per hour increase, from to $8.67 to $9.04 per hour. Missouri: announced that the state minimum wage will remain unchanged at $7.25 per hour. The rate increases are for the “regular” minimum wage. Under federal minimum wage law, states may permit employers to pay a lower hourly rate, sometimes referred to as a subminimum wage, based on certain factors; examples include age (minors), tips, commissions and employer gross revenue.

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