New Maryland Minimum Wage Effective 1/1/20
- The new Maryland Minimum Wage is $11.00 per hour
- Some counties and municipalities have higher rates, so check any localities you are working in (Montgomery County, for example)
2020 Federal Mileage Reimbursement Rate
- The new reimbursement rate for mileage is 57.5 cents per mile, down from 58 cents in 2019
- This is not a mandate level for reimbursement, but it is the maximum allowed for Federal tax deduction by a business
- Employers may choose to pay employees less than this amount, particularly if reimbursement exists alongside a vehicle allowance
Debt Consolidation- Could it benefit my company?
- Companies can accumulate many loans, at various rates, over time
- Multiple vehicle or equipment loans can bog down bookkeeping & accounting tasks
- Consolidating multiple loans into one larger loan can simplify payment processing and accounting
- Interest rates are generally low currently, so review your older loan rates to see if you could save on interest expenses
- Factor any loan origination costs related to a new loan, against any interest savings
- Be careful about extending the term of a consolidation loan beyond the time that you would have paid off individual loans
- Longer re-payment periods could cost more in interest, even if the rate is lower
- You could be making payments toward debt incurred for something your company no longer owns
New IRS Guidance on the 2020 W-4
- Only employees who get their first paycheck after 1/1/20 are required to use the new 2020 W-4 (attached), all others are optional
- The IRS is now advising that employers encourage existing employees to update their withholding amounts with the new W-4 to avoid possible under-withholding
- Please consult with your tax advisor about which option is best for you
- Leave withholding rates in place that are from the older form, OR
- Update withholding with the new form
2020 New Overtime Rules
- Effective 1/1/20, new Federal overtime rules are in effect
- The focus of the new rules is clarification of which employees are “Exempt” status, meaning they do not have to be paid overtime
- Please see the attached Fact Sheet from the Department of Labor for general guidelines
There’s a lot going on that companies need to be aware of. Stay current with industry developments through the Small Business Circle!!