On Nov. 3, Florida voters elected to raise minimum wage to $10 per hour, effective on Sept. 30, 2021. Each subsequent September, the state amendment will gradually increase minimum wage by $1 per year until reaching $15 in 2026. From that point forward, future minimum wage increases shall revert to annual inflation adjustments, beginning in Sept. 2027. Tip credit will not change.
Sept. 2021 may feel like a lifetime away for small business owners in Florida. But, the date will arrive before you know it. Note the implications to your company well in advance and adjust your budgeting to account for this change.
It especially impacts franchise owners, who currently pay their employees a minimum wage of $8.65 per hour in 2020. According to Forbes, an estimated 200,000 Florida residents currently live on the state minimum wage, which equates to a yearly salary of just $18,000. For comparison, the U.S. Department of Health & Human Services set the poverty threshold for a family of three at $17,200.
It is imperative that franchise owners plan ahead for the new wage increases.
A great way to start is by crunching the numbers to see where you will stand in 2021. Don’t forget to account for hidden payroll expenses, in addition to employee wages. Remember unemployment benefits, workers’ compensation, social security taxes and disability insurance. These rates will shift along with minimum wage.
As wages rise, so does the liability associated with mistakes. Under the incoming presidential administration, it is possible franchisees may experience enhanced penalties and enforcement actions for noncompliance. Plus, while good recordkeeping can help settle a lawsuit or deflect an audit, it still costs time and money.
And unfortunately, this news comes at a time that many are still dealing with the lasting effect of the global pandemic on the business marketplace. Your time is in high demand as you develop new delivery methods for your goods or services. You may have also adjusted your supply-chain and marketing strategy along the way. Whether you franchise an auto-parts store, well-loved restaurant chain or other business, survival during these tough times requires determination, wisdom and support.
Partnering with a professional employer organization (PEO) like Integrity Employee Leasing can bring valuable relief when you need it most. That’s because 17 percent of running a business is spent on back-office tasks that fall outside the core function of a business, according to Sage. These are the tasks that a PEO like Integrity could handle every day on your behalf. A PEO serves an extension of your business, shouldering the administrative responsibilities of running a small- or mid-size franchise. This simplifies your workload and gives you more time to manage your business.
But it gets better. According to the National Association of Professional Employer Organizations, businesses that use PEOs grow seven to nine percent faster, have 10 to 14 percent lower employee turnover and are 50 percent less likely to go out of business. With decades of experience in partnership with small- and mid-size franchises, Integrity Employee Leasing could be your secret weapon. We’re a leader in our industry, with a focus on strong relationships and stellar customer service, competitive pricing and innovation.
More importantly, our extensively credentialed team of number crunchers, HR experts and other professionals can offer you a combined total of several hundred years of practical, hands-on experience with a variety of complex cases. We know every rule, statue, law and general guideline that could possibly affect your business. Plus, we have already started preparing our existing clients for the minimum wage increase and other regulatory changes coming in 2021.
There’s no better time than the present to let us lighten your load in time for the new year. It’s easy! Integrity Employee Leasing already has the prerequisite processes and software systems in place to quickly tackle any payroll administration, bookkeeping, employment tax, human resources, risk management or insurance challenges that may be currently facing your business. And, we can prepare your business for the mandatory minimum wage increases in 2021 and beyond.
Visit our website at https://integrityel.com/why-peo, or call us (941) 625-0623 to explore your options.