Navigating payroll for small businesses in Minneapolis involves understanding local minimum wage laws, which differ from the state requirements. Ensuring compliance is essential to avoid penalties and legal issues.
Minneapolis Minimum Wage Overview
Minimum Wage Rates
As of 1/1/2024, large businesses in Minneapolis (over 100 employees) must pay a minimum wage of $15.57 per hour, while small businesses (100 or fewer employees) are required to pay $15.57 per hour beginning 7/1/2024. These rates are higher than the Minnesota state minimum wage, which is $10.85 for large employers and $8.85 for small employers as of 1/1/24.
Business Size Determination
Business size is calculated based on the average number of weekly employees. It’s crucial for businesses to accurately count employees, including part-time and temporary workers, to determine whether Minneapolis considers your business large or small.
Payroll Compliance Requirements
Wage Payment and Recordkeeping
Businesses must pay at least the full Minneapolis minimum wage before tips and maintain meticulous payroll records and timesheets to show the wages paid and hours worked by each employee for at least three years.
Annual Rate Increases
Minneapolis minimum wage rates increase annually. Staying updated on new rate changes is crucial for ongoing compliance.
Consequences of Non-Compliance
Non-compliance with minimum wage laws can result in significant penalties and fines, as well as potential legal action and lawsuits from employees.
Compliance Tips for Businesses
- Conduct Regular Payroll Audits: Regularly auditing your payroll can help identify and correct any discrepancies before they become issues.
- Implement Robust Recordkeeping Practices: Maintain detailed records of all employee wages and hours worked to ensure accurate compliance.
- Stay Updated on Wage Law Changes: Monitor updates to local and state wage laws to ensure your business remains compliant.
- Seek Professional Guidance: Consulting with a payroll specialist or accountant can help navigate the complexities of wage laws.
Working with Haworth & Company, Ltd.
With 4 convenient locations in the Twin Cities, as well as Rochester, Haworth & Company, Ltd. provides expert guidance on payroll compliance and local wage laws. Our EZ Payroll team helps small businesses maintain adherence to regulations, ensuring smooth and lawful operations. Contact us to ensure your payroll processes align with Minneapolis minimum wage requirements and more!
Disclaimer: This blog content is for general informational purposes only, should not be considered professional advice, and does not establish a client relationship. Haworth and Company is not liable for the accuracy of this information or the content of external links. Please use this information at your own risk, ensuring it suits your specific needs, and consult with a certified tax professional for your own personalized guidance.
