Santa Rosa accounts payable and minimum wage increases and requirements are impacted by many factors, but one of the most contentious is the possibility of a minimum wage increase. How would a minimum wage increase impact your business?
A number of workers across the country are complaining about economic inequality. They argue that the wages that they are being paid are inadequate and feel that they should be raised. The Fight for $15 movement is one of the most momentous movements in the country. How would a minimum wage increase impact Santa Rosa accounts payable procedures?
There are a number of factors that you need to take into consideration when managing your financials. While the financial structure of every business is different, labor is a huge expense for almost every business. A minimum increase could have a significant impact on the accounts payable of almost all businesses in Santa Rosa.
A minimum wage increase is taking effect in Seattle on April 1. The minimum wage will gradually be increased to $15 an hour over the next seven years. Businesses in that region have to make a number of changes, which include the following:
· Reducing employees on their payroll
· Cutting employee hours
· Using cheaper ingredients and materials for their products
· Raising their prices
Regardless of the approach that they take, a minimum wage increase will force all businesses to make changes to their financial plans. The impact will be most profound for restaurants, because the average Seattle eatery spends about 36% of their revenue on employee wages. They will either be cutting costs in other ways or reducing the number of people that they have on hand, which may also lead to reduced revenue over the long-term.
All Santa Rosa businesses need to be prepared for a higher minimum wage. The state minimum wage was raised to $9 an hour on January 1, 2014. It is set to be raised by $10 an hour on January 1, 2016. There are some exceptions, but all businesses will need to be prepared for the upcoming change.
There is also a possibility that the wage floor will be raised even higher in the coming year. A wealthy Californian named Ron Unz has introduced a new ballot that would increase it to $12 an hour, which would make California’s minimum wage the highest in the country. This is something that business owners across the state need to be prepared for.
If you own a business that hires minimum wage employees, then you will need to be prepared for higher payrolls costs in the coming year. The change will also impact you if you hire people for less than $10 an hour (or $12 if the other ballot is approved). This will have a significant impact on your Santa Rosa accounts payable and minimum wage increases, so it may be necessary to speak with an accountant if you need any guidance.
Please don’t hesitate to contact us if you need assistance with your Santa Rosa accounts payable if you face higher payroll costs. We look forward to hearing from you!