2017 Minimum Wage and Tax Update

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1 Important Compliance Update 2017 and Tax Update

2 Important Compliance Update State Current Minimum Wage Current Tipped Tipped Alaska $9.75 $9.80 Arizona $8.05 $5.05 $10.00 $5.15 Arkansas $8.00 $2.63 $8.50 $2.63 California $10.00 $10.50 Colorado $8.31 $5.29 $9.30 $6.28 Connecticut $9.60 (Tip minimum wage varies $10.10 (Tip minimum wage varies Florida $8.05 $5.03 $8.10 $5.08 Hawaii $8.50 $7.75 $9.25 $8.50 Maine $7.50 $3.75 $9.00 $5.00 Massachusetts $10.00 $3.35 $11.00 $3.75 Michigan $8.50 $3.23 $8.90 $3.38 Missouri $7.65 $3.83 $7.70 $3.85 Montana $8.05 $8.15 New Jersey $8.38 $2.13 $8.44 $2.13 New York City < 10 Employees New York City > 10 employees $9.00 $7.50 $10.50 $9.00 $7.50 $11.00 (Tip minimum wage varies (Tip minimum wage varies New York Downstate $9.00 $7.50 $10.00 (Tip minimum wage varies New York Upstate $9.00 $7.50 $9.70 (Tip minimum wage varies New York City < 10 Employees Fast Food New York City > 10 employees Fast Food New York Downstate Fast Food New York Upstate Fast Food $9.00 $12.00 $9.00 $12.00 $9.00 $10.75 $9.00 $10.75 Ohio $8.10 $4.05 $8.15 $4.08 South Dakota $8.55 $4.28 $8.65 $4.33 Vermont $9.60 $4.80 $10.00 $5.00 Washington $9.47 $11.00

3 Important Compliance Update Unemployment State Unemployment 2016 Unemployment 2017 Alaska $39,700 (Employee tax rate decreased from 0.57% to 0.5%) $39,800 (Employee tax rate unchanged 0.5%) Colorado $12,200 $12,500 Hawaii $42,200 $44,000 Idaho $37,200 $37,800 Iowa $28,300 $29,300 Kentucky $10,200 $10,200 Minnesota $31,000 $32,000 Montana $30,500 $31,400 Nevada $28,200 $29,500 New Jersey $32,600 $33,500 New Mexico $24,100 $24,300 New York $10,700 $10,900 North Carolina $22,300 $23,100 North Dakota $37,200 $35,100 Oklahoma $17,500 $17,700 Oregon $36,900 $38,400 Pennsylvania Rhode Island $9,500 $22,00 (Employers with an Experience Rate of 9.79% use the High Wage Limit of $23,500) $9,750 $22,400 (Employers with an Experience Rate of 9.59% use the High Wage Limit of $23,900) Utah $32,200 $33,100 Vermont $16,800 $17,300 Washington $44,000 $45,000 Wyoming $25,500 $25,400 Virgin Islands $23,000 $23,500 (A full list of unemployment wage limits can be found on the Valiant tax card 2017)

4 Important Compliance Update Local Taxes Jurisdiction Tax Code Local Tax Rate Local Tax Rate Wage Limit Other KY ALEXANDRIA 18D3 $127,200 KY BARDSTOWN 18B KY BOONE COUNTY OPT 1828/ky05610 $59,217 KY COLD SPRINGS CITY 18CB $127,200 KY COVINGTON KY08610 $127,200 KY CRESTVIEW HILLS 18BA $127,200 KY FLORENCE KY17265 $127,200 KY FORT WRIGHT 18AL $127,200 KY FRANKLIN CITY 1898 $127,200 KY KENTON CNTY KY31464 $127,200 KY NEWPORT 1838 $127,200 KY SIMPSON COUNTY 18F4 $127,200 OH ASHLAND CITY LOCASHLNDC OH ATHENS CITY 36EN OH BREWSTER VILLAGE 36LQ OH CENTERVILLE OH CLEVELAND CITY OH DAYTON OH MADISON VILLAGE 36KV Now RITA OH MILLERSPORT 56XU Now RITA OH MINERVA VILLAGE 36MI OH NEW FRANKLIN 364R OH NORTHFIELD VILLAGE 36FE Now RITA OH NORWALK CITY LOCNORWLKC Now RITA OH WARREN CITY OH WILMINGTON CITY EIT 36FT OR TRIMET TRANSPORTATION TAX OR LANE COUNTY MASS TRANSIT TAX

5 Important Compliance Update Withholding State Taxes California Kentucky Maine Maryland Minnesota Nebraska New York New Mexico North Carolina Oklahoma Puerto Rico South Carolina Changed all factors and new tax tables Standard deduction increased, nonresident aliens should use supplemental tax rate New rates for Calvert and Somerset counties Increased allowance amount and new tax tables Standard deduction increased married only and new tax tables Increased standard deduction, decreased tax rate Eliminated special deduction Totally new calculations FUTA Credit Reduction Clients incurring a liability for unemployment taxes in the states of California as well as the U.S. Virgin Islands are subject to a reduction in their FUTA credit. This is because those jurisdictions have outstanding loans with the federal government which have been used to fund employee benefits. The reduction rate for both Jurisdictions is 1.8%. The rates are updated in our payroll software retroactive to January 1st and a recalculation is done to determine the additional liability for The hope is that by next November the jurisdictions that had outstanding loans will pay them and not incur a credit reduction for Making that assumption we reset the rate in our software to zero effective and do not record any liability until the 2017 reduction states are identified in November and we repeat the process. Note: Valiant Solutions, Inc. provides this document as a courtesy to its clients. While thoroughly checked before printing, Valiant is not responsible for any errors it may contain. Please contact your local government agencies for verification.