Schock & Poores
CPAs, Inc.

 

Payroll Services & Information

Ohio Minimum Wage to Increase 10 Cents in January 2011

Effective January 1, 2011 Ohio's minimum wage is set to increase by 10 cents to $7.40 an hour.

The $7.40 rate applies to workers 16 and older who don't get tips.

The wage for tipped employees will be $3.70 per hour, a five cent increase.

This wage increase applies to employers who's annual gross receipts are more than $271,000.

Employers with less than $271,000 and for 14 and 15 year-old workers, the minimum wage is set to match the federal minimum wage currently $7.25 per hour.

Small Business Health Care Credit

The credit is available to eligible small employers that pay at least half the cost of single coverage for their employees. The credit is up to 35% of the premium costs in 2010.

• A qualifying employer must have less than the equivalent of 25 full-time workers.

• A qualifying employer must pay average annual wages below $50,000.

In determining the number of full-time equivalent employees and average annual wages business owners are not included in the calculation. Also, their health care costs are not included in the amount eligible for the credit.

The credit will be available as a general business credit starting with the 2010 income tax return filed in 2011.