Prepare for a Minimum Wage Hike State-Wide and In Bellingham
Minimum Wage Hike
A minimum wage hike is set to take effect on January 1, 2024, and workers in Bellingham can expect another minimum wage hike starting May 1, 2024.
The minimum wage in Washington is adjusted for inflation each year. In 2024, the hourly rate will rise from $15.74 to $16.28 starting January 1.
Workers in Bellingham can expect another bump on May 1. Voters passed an initiative in November 2023 that adds $1 to the state hourly rate. Meaning that businesses in the Bellingham city limits can expect to pay $17.28 an hour. The initiative goes further in 2025, adding $2 an hour to the state minimum wage.
Overtime for Salaried Workers
Salaried workers in Washington will earn more in 2024 if employers want them exempted from overtime pay. Starting January 1, 2024, employers paying salaried employees less than twice the minimum wage will need to pay them 1.5 times their corresponding hourly wage for overtime hours. That minimum works out to $1,302.40 per week, or $67,724.80 per year. Washington state has been phasing in a salary threshold amount starting in 2020. The final rate – 2.5 times the hourly minimum wage – will take effect on January 1, 2028.
BOI Reporting
Starting January 1, 2024, individuals who own or control a company – who the Feds call their beneficial owners – will have to report information about their companies and themselves to the government. Small business owners who operate S corporations, C corporations or LLCs will likely have to file.
We sent an email about BOI reporting to our clients recently. You can refer to that email to find out more, or click here.
Third-Party Payments Reporting
The IRS was going to require reporting payments of more than $600 via third-party providers (like Venmo or Zelle) and online marketplaces. The previous threshold was $600. The IRS originally scheduled the change for the 2022 tax year, but after a lot of criticism and complaints, the government delayed the change to the 2023 tax year. But now the IRS has bumped the change to the 2024, and also moved the threshold to $5,000 to phase in the new $600 limit.
Links
Some companies are exempt from BOI reporting – you can learn more here.
Lastly, you can learn more about our services here!
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