| Minimum Wages |
% Increase of Minimum Wages |
Minimum Tipped Wages |
% Increase of Minimum Tipped Wages |
Yearly Wage |
|---|---|---|---|---|
| $10.00 |
Current |
$6.98 |
$1.44 |
2021 Wage |
| $11.00 |
10% |
$7.98 |
$2.44 |
2022 Wage |
| $12.00 |
9.09% |
$8.98 |
$3.44 |
2023 Wage |
| $13.00 |
8.33% |
$9.98 |
$4.44 |
2024 Wage |
| $14.00 |
7.69% |
$10.98 |
$5.44 |
2025 Wage |
| $15.00 |
7.14% |
$11.98 |
$6.44 |
2026 Wage |
 |
||||
Florida’s minimum wage will increase to $11 an hour on September 30, 2022. This is part of a phased approach to get the minimum wage to $15 an hour by 2026. Your business needs to be prepared for the impact of the adjustment. ShaBro Alternative Office Solutions offers suggestions on how your business can stay competitive without undercutting profits.
Understand what an increase in Florida’s Minimum Wage means
- Industry reports suggest increasing the minimum wage stimulates consumer spending, helps businesses’ bottom line, raises the family income of many low wage workers, and inspires higher employee retention.
- Report after report indicates that increased wages, including fall in line with positive economic impacts. Workers will tell you they are not interested in jobs that do not pay them fairly. They are attracted to businesses proactive at increasing wages.
- When employees make more, they spend more, creating an economic boost for communities, as small businesses realize the benefits of improved profit margins. Increased wages, including Florida’s minimum wage, also help lower poverty rates and release reliance on government projects (which can lower taxes). The benefits also can accelerate the opportunity for a more diverse workforce. The median income of many marginalized groups is often dramatically less than the national median income. Higher wages help close those gaps.
- According to the Congressional Budget Office, the minimum wage increase boosts wages for 27 million Americans, lifts about a million people out of poverty and increases aggregate wages for low-income workers by over $300 billion over the next decade. Those factors result in lower government spending for safety-net programs like food stamps and Medicaid.
THING YOU CAN DO NOW
Go line by line on your expenses
Doing a complete audit of your expenses may uncover wasteful spending and ways where you can cut a few corners. There could be enough possible savings to help offset the payroll increase.
Build a budget
A key for any business is determining profit margin based on the new wage figures. Forecast your operating expenses and calculate a new budget with the information. This will help you maintain the profit margin.
Use your digital tools
Let technology work for you by automating your social media presence, streamlining scheduling using other automated forms on your company’s website. This process can help you optimize your business without the need for additional employees or work hours.
Evaluate your employees
This is a good time to determine the number of full-time employees who are essential in helping you maintain a productive and efficient business. Can some of the work be done on a part-time basis or can other employees pick up certain tasks.
Consider retirement plan options
The SECURE Act – or “Setting Every Community Up for Retirement Enhancement” – offers tax incentives for small businesses if they set up enrollment into retirement plans, like a 401(k). The legislation also allows businesses to partner with other companies to collectively offer retirement plans. Offering annuities as investment options within 401(k) plans also is an option. Offering strong wages with retirement plan options only strengthens an employer’s ability to retain good workers.
Can prices by increased?
No one wants to price customers out of the market, but a strategic look at gradual price increases may be a possibility. New operating costs may lead to small increases, but rising those prices slowly gives diehard customers an opportunity to adjust while still ensuring revenue.
ShaBro can provide solutions
We can help you better manage Florida’s minimum wage changes. Our expertise in human resources, bookkeeping and accounting can help your business run more efficiently and productively. The expertise we provide could be a difference maker for your business and provide a cost savings in the long run.
For more information on the minimum wage increase, go to: