Q: How do I know if I have to follow federal minimum wage amounts or Minnesota?
A: A large employer has annual gross revenue of $500,000 or more and then you would have to follow the federal minimum wage rate which is currently $9.50. But a small employer would be under Minnesota’s minimum wage rate at $7.75 but keep in mind that this amount will have annual indexed increases starting January 1, 2018. Another factor would be if your business is involved with interstate commerce then you fall under the federal rate. What’s interstate commerce? That’s when you are doing business with people in other states. Plus, if your small business accepts credit cards, that is considered interstate commerce and you now also fall under the federal minimum wage rates and overtime at 40 hours per week, versus 48 hours under Minnesota law for small businesses. To find out more how this could affect your business, feel free to call our office, we’d love to help.
Taxes, Investments, Business and maybe a little more. Sandy Flom, Faribault CPA