The Federal minimum wage has remained at $7.25 per hour since 2009, but 24 states and many cities, counties and locals have set increases effective January 1st, 2026, and a few effective during 2026. The state with the highest minimum wage is D.C. (yes, I know D.C. is not a state, but in any payroll system, D.C. is selected in the state field) at $17.95 an hour, and a number of cities within Washington state are well above $20.00 per hour. Back in the “old days” of 2012, we heard of the “Fight for $15.00” movement, and looking at the…
Posts published in December 2025
Over the next few weeks, as your employees start to receive their 2025 W-2 form, they will likely have questions as to what all those numbers mean. For example, it is not uncommon for a salaried employee who earns a salary of “$50,000” per year question why their Box 1 Wages only reflects $45,000. Did they get underpaid? Probably not. If the employee contributes to a pension plan (aka 401(k)) or has pre-tax insurance deductions, then those amounts reduces the “taxable” wage, which is what is represented in Box 1. Some employees may also wonder why their Federal Income Tax…