Brick, New Jersey (PRWEB) September 04, 2014
New Jersey is one of 13 states that increased the minimum wage at the start of this year. With the state minimum wage jumping a full dollar from $7.25 to $8.25, both large and small businesses are feeling the impact of the increase, and other states are likely to follow. New Jersey payroll solutions company SourceOne Partners offers the following tips to help companies prepare for minimum wage increases.
The first action SourceOne Partners recommends is to perform an audit of your employees’ current pay. A thorough assessment will help determine what to expect when wage increases are implemented. Such an audit should include the following:
With a current picture of per employee payroll spending in place, it’s time to crunch the numbers to see how that will change. For employees who work a fixed number of hours, this should be a simple equation – simply multiply their current hours by the current minimum wage, then multiply their hours by the new minimum wage, and subtract the first amount from the second to see the increase.
For employees with variable schedules, calculations will be a bit more complicated; but basing the above formula on the average amount of hours such employees work should provide a close estimate of what to expect.
Once you’ve calculated the minimum wage increases, you will also need to calculate the tax implications so that those who manage payroll will be ready to adjust paycheck withholdings. It’s crucial to get payroll taxes right for each employee in order to avoid legal consequences.
Finally, SourceOne Partners suggests being prepared for future minimum wage increases by taking the following actions:
One of the simplest ways to prepare your payroll department for minimum wage increases and avoid potentially catastrophic mistakes is to turn to professionals for help. Payroll experts SourceOne Partners can help you find a payroll company to efficiently manage the entire process without disruption to your business. SourceOne Partners will provide a free PEO or payroll quote. They also offer a complimentary Lunch & Learn to provide insight on working with a PEO or payroll company.
About SourceOne Partners
SourceOne Partners is a leading provider of PEO and payroll services in South Florida, New Jersey, New York, and Pennsylvania. The services SourceOne provides help companies reduce HR costs, minimize employer risk and liability, and relieve the administrative burdens of HR and payroll. Visit sourceonepartners.com or call 561-674-0748 for a free payroll or PEO analysis for your business.
SourceOne Partners Locations:
2255 Glades Road
Boca Raton, FL 33431
990 Cedarbridge Ave #7
Brick, NJ 08723