Florida's Minimum Wage Updates: A Guide by Pronto Income Tax

Effective January 1, 2021, significant changes are coming to Florida's minimum wage, impacting both employees and employers.

Immediate Minimum Wage Increase:

Starting September 30, 2023, Florida's minimum wage will rise from $11.00 per hour to $12.00 per hour. Additionally, the minimum wage for tipped employees will increase from $7.98 per hour to $8.98 per hour. Employers in Florida can still apply a tip credit of up to $3.02 per hour for employees classified as tipped workers. As your trusted financial advisors, Pronto Income Tax is here to keep you informed about these crucial updates.

However, it's essential to note that this initial increase is just the beginning of a series of changes that will significantly impact minimum wage over the next few years.

The Path to $15.00 Per Hour:

In November 2020, Florida voters approved a Constitutional Amendment outlining a phased approach to raise the minimum wage to $15.00 per hour by 2026. These annual increases will occur each September, gradually improving the earning potential for workers. Here's a breakdown of the upcoming changes:

• $13.00 on September 30, 2024
• $14.00 on September 30, 2025
• $15.00 on September 30, 2026

Furthermore, starting on September 30 of each year following 2026, Florida's minimum wage will undergo annual adjustments based on the percentage increase in the federal "Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region."

These changes are significant and require employers to stay well-informed and make necessary adjustments to their payroll practices. At Pronto Income Tax, we are committed to assisting businesses and individuals in efficiently managing these changes, including expert payroll tax services.

As the financial landscape evolves, trust Pronto Income Tax to provide you with the latest updates and expert guidance to ensure compliance and financial success. Give us a call at 📞 305-267-1092

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