It’s hard to believe that the end of 2019 (and the end of a decade!) is nearly upon us. That means new tax and minimum wage changes are on the horizon. In preparation for the new year, we’ve compiled a list of important changes that will help you prepare your staffing company for 2020.
Earned Income Tax Credit Notice Information:
For 2019, you are encouraged to notify the following employees that they may be able to claim EIC on their 2019 tax returns:
There are seven states that require employers to provide some additional notification to their employees about their possible eligibility for Earned Income Tax Credit. The following states allow employers to use Federal Notice 797:
The following states require the use of a state-specified form:
Once these documents are updated for the current year, they will be available on TRICOM’s website under: http://tricom.com/resources/tax-tools. Please contact your TRICOM Accounting representatives if you have any questions.
Minimum Wage Increases:
2020 Wage Changes
State |
2020 |
2019 |
Change |
Alaska |
10.19 |
9.89 |
0.30 |
Arizona |
12.00 |
11.00 |
1.00 |
Arkansas | 10.00 | 9.25 | 0.75 |
California -1 |
13.00 |
12.00 |
1.00 |
Colorado |
12.00 |
11.10 |
0.90 |
Florida |
8.56 |
8.46 |
0.10 |
Illinois | 9.25 | 8.25 | 1.00 |
Massachusetts |
12.75 |
12.00 |
0.75 |
Maine |
12.00 |
11.00 |
1.00 |
Maryland | 11.00 | 10.10 | 0.90 |
Michigan | 9.65 | 9.45 | 0.20 |
Minnesota-3 |
10.00 | 9.86 | 0.14 |
Missouri |
9.45 |
8.60 |
0.85 |
Montana |
8.65 |
8.50 |
0.15 |
New Jersey-4 |
11.00 |
8.85 |
2.15 |
New Mexico | 9.00 | 7.50 | 1.50 |
New York-2 |
11.80 |
11.10 |
0.70 |
Ohio-5 |
8.70 |
8.55 |
0.15 |
South Dakota | 9.30 | 9.10 | 0.20 |
Vermont |
10.96 |
10.78 |
0.18 |
Washington |
13.50 |
12.00 |
1.50 |
1- Listed for employers with 26 or more employees-employers with 25 or less is $12.00
2- Listed rate for most NY employers; Minimum wage for New York City is $15.00 for large employers
3- Rate listed for large employers (annual sales of $500,00 or more) small employers have minimum wage of $8.15
4- Rate for most employers; $10.30 for seasonal or small employers (fewer than 6 employees); $10.30 for agricultural employers
5- Rate is listed for large employers ($319,000 in gross receipts); $7.25 (Federal Rate, for small employers)
2020 Unemployment Wage Bases:
STATE |
|
STATE |
|
WAGE |
WAGE |
||
BASE |
BASE |
||
Alabama |
$8,000 |
Nebraska |
9,000 |
Alaska |
|
Nevada |
32,500 |
Arizona |
7,000 |
New Hampshire |
14,000 |
Arkansas |
7,000 |
New Jersey |
35,300 |
California |
7,000 |
New Mexico |
25,800 |
Colorado |
13,600 |
New York |
11,600 |
Connecticut |
15,000 |
North Carolina |
25,200 |
Delaware |
16,500 |
North Dakota |
|
District of Columbia |
9,000 |
Ohio |
9,000 |
Florida |
7,000 |
Oklahoma |
18,700 |
Georgia |
9,500 |
Oregon |
|
Hawaii |
|
Pennsylvania |
10,000 |
Idaho |
|
Puerto Rico |
|
Illinois |
12,740 |
Rhode Island (Tier 1) |
|
Indiana |
9,500 |
Rhode Island (Tier 2) |
|
Iowa |
31,600 |
South Carolina |
14,000 |
Kansas |
14,000 |
South Dakota |
15,000 |
Kentucky |
10,800 |
Tennessee |
7,000 |
Louisiana |
Texas |
9,000 |
|
Maine |
12,000 |
Utah |
|
Maryland |
8,500 |
Vermont |
16,100 |
Massachusetts |
15,000 |
Virgin Islands |
24.200 |
Michigan |
|
Virginia |
8,000 |
Michigan (delinquent employers) |
|
Washington |
52,700 |
Minnesota |
|
West Virginia |
12,000 |
Mississippi |
14,000 |
Wisconsin |
14,000 |
Missouri |
11,500 |
Wyoming |
26,400 |
FUTA Reduction States:
For tax year 2019, only the Virgin Islands has not repaid their Federal Unemployment Tax loans. Their FUTA Credit reduction rate for 2019 will be 2.7%.
State Tax Table Changes:
The following states have changed their tax tables for 2020 (please keep in mind other states may be added to this list):
Federal Tax Changes:
Standard Deduction Changes:
The following are additional standard deduction changes:
Additional State & Federal Tax Topics:
For more legislative and year-end updates, please refer to TRICOM.com. We’ll post the latest legislative and tax updates, as well as tax tools and other resources for 2020 as they become available. For specific questions, please contact Mary Jo Heim in the TRICOM Accounting Department at 262-509-6214 or your TRICOM Accounting Representative.