2017 Changes Employers Need to Know About

2017 has arrived, and like every new year, it brings important changes employers need to know about!

Minimum wage increases:

changes for employer in 2017Washington’s minimum wage increased to $11.00 an hour on January 1st.

Are there exceptions? Yes, of course there are!

  • If you have employees in Tacoma, you need to pay them $11.15 per hour.
  • In Seattle, it depends on how large your business is, and whether or not you offer health insurance. Your Seattle employees must be paid anywhere from $11 to $15 per hour in 2017.
  • SeaTac workers will enjoy a minimum wage of $15.35.

L&I rate increases:

L&I is raising premiums an average of .7% across the board.

Washington state is one of the only four states in the country that has a monopolistic workers compensation system — meaning that employers must get their workers comp insurance from the state government.

How are our neighbors doing?

  • Oregon’s premiums will drop 6.6% in 2017, the 4th straight year to decrease.
  • Idaho employers will enjoy a 1.2% decrease in premiums in 2017.

Affordable Care Act changes:

For employer-sponsored coverage, plans qualify as affordable if the employee’s premium is no more than 9.69% of their annual household income in 2017.

The deadline for ACA reporting on 1095-C forms and 1095-B forms has been extended from 1/31/17 to 3/2/17, giving employers a little breathing room.

IRS mileage rate change:

In 2017 the IRS standard mileage rates for business use of a personal car will be 53.5 cents per mile, down from 54 cents in 2016.

I-9 Form changes:

The new I-9 form goes into effect on 1/21/17, and as of that date, you cannot use the current version. The new form is available now, and you can get information on it and download it here.

Taxable wage base rises:

The maximum amount of wages subject to Social Security tax increases 7% from $118,500 to $127,200. It remained unchanged in 2016.

More changes still to come:

The new administration will no doubt bring other large changes that affect businesses and the workplace.

2017 may be a very interesting year! And we’ll be here every month to tell you about what that means for your company!

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