Minimum Wage to Increase for Michigan Employees

The state of Michigan has recently passed a law that will gradually increase the minimum wage for non-exempt employees to $12.00 per hour by January 1, 2022.  The state minimum wage applies to all Michigan employers with two or more employees who are 16 years of age or older.

In the past, Michigan has allowed employers to pay tipped employees 38% of the minimum wage, but that percentage will gradually increase to 80% of the minimum wage by January 1, 2022.  Continue reading

New IRS Reporting Rules on Gratuities

In the past, tip reporting has been a problem for certain employers in the service industry and now the IRS has upped the ante.

Under a ruling that took effect this year, employers must treat “automatic gratuities” as service charges, not tips. What this does is increase payroll tax obligations as well as change wage-hour requirements.

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