resources

  • Tax Alerts

Tax Mid-Year Review

June 22, 2020 Alerts

Learn about Federal tax updates and state and local minimum wage information effective July 1 through December 31, 2020.

Over the past four months much of the focus has been on Coronavirus legislation but there has been movement in other areas of tax law legislation that may have impact on your business.  Below are summaries of what to expect and prepare for beginning July 1, 2020 through December 31, 2020.

Effective July 1 - December 31

Federal Updates

  • Federal Tax Filing and paying postponed to July 15, 2020 without penalty and interest, regardless of the amount owed.
  • IRS Releases New Form 941
    • Final version of the form will be released soon
    • Click here for more agency information
    • Click here to view Draft Copy of 941
  • IRS Releases New Form 7200
  • Advanced Payment of Employer Credits Due to COVID-19
  • Click here for more agency information
  • Click here to view Form 7200

State Minimum Wage Updates

Following below is a list of state jurisdictions changing their state minimum wages rates effective July 1, 2020.

State

Effective Date

Future Hourly Minimum Wage Rate

 Hourly Minimum Wage Rate

Minimum Cash Wage

Maximum Tip Credit

Connecticut

9/1/2020

$12.00

$11.00

$6.38: wait staff; $8.23: bartenders

$5.62:wait staff; $3.77: bartenders

District of Columbia

7/1/2020

$15.00

$14.00

$5.00

$10.00

Illinois

7/1/2020

$10.00

$9.25

$6.00

$4.00

Nevada

7/1/2020

$9,
$9,
$9.00 & $8 w/ health benefits

$8.25,
$7.25 w/ health benefits

N/A

N/A

Oregon

7/1/2020

$12.00

$11.25

N/A

N/A

Rhode Island

10/1/2020

$11.50

$10.50

$3.89

$6.61

 

Local Minimum Wage Updates.

Following below is a list of local jurisdictions changing their state minimum wages rates effective July 1, 2020.

State

Local

Effective Date

Future Hourly Minimum Wage

Minimum Cash Wage

Maximum Tip Credit

California

Alameda City (Private Employers)

7/1/2020

$15.00

N/A

N/A

 

Berkeley

7/1/2020

$16.00

N/A

N/A

 

Emeryville

7/1/2020

$16.84

N/A

N/A

 

Freemont  (Small employers 25 or Fewer employees)

7/1/2020

$13.50

N/A

N/A

 

Freemont (Large Employers  with 26 or more employees)

7/1/2020

$15.00

N/A

N/A

 

Los Angeles City (Employers with 25 or fewer employees)

7/1/2020

$14.25

N/A

N/A

 

Los Angeles City (Employers with 26 or more employees)

7/1/2020

$15.00

N/A

N/A

 

Los Angeles County (Employers with 25 or fewer employees)

7/1/2020

$14.25

N/A

N/A

 

Los Angeles County (Employers with 26 or more employees)

7/1/2020

$15.00

N/A

N/A

 

Malibu (Employers with 25 or fewer employees)

7/1/2020

$14.25

N/A

N/A

 

Malibu (Employers with 26 or more employees)

7/1/2020

$15.00

N/A

N/A

 

Milpitas

7/1/2020

$15.40

N/A

N/A

 

Novato City (Employers with 1-25 employees)

7/1/2020

$13.00

N/A

N/A

 

Novato City (Employers with 26-99 employees)

7/1/2020

$14.00

N/A

N/A

 

Novato City (Employers with more than 100 employees)

7/1/2020

$15.00

N/A

N/A

 

Pasadena (Small employers 25 or Fewer employees and Nonprofits)

7/1/2020

$14.25

N/A

N/A

 

Pasadena  (Large employers 26 or more employees)

7/1/2020

$15.00

N/A

N/A

 

San Carlos

7/1/2020

$15.00

N/A

N/A

 

San Leandro

7/1/2020

$15.00

N/A

N/A

 

San Francisco

7/1/2020

$16.07

N/A

N/A

 

Santa Monica  (Employers with 25 or fewer employees)

7/1/2020

$14.25

N/A

N/A

 

Santa Monica (Employers with 26 or more employee)

7/1/2020

$15.00

N/A

N/A

 

Santa Rosa  (Small Employers 25 or fewer employees)

7/1/2020

$14.00

N/A

N/A

 

Santa Rosa   (Large employers 26 or more employees)

7/1/2020

$15.00

N/A

N/A

Illinois

Chicago (employers with 19 or fewer employees)

7/1/2020

$13.50

$8.40

$5.10

 

Chicago (employers with  20 or more employees)

7/1/2020

$14.00

$8.40 

$5.60

 

Cook County

7/1/2020

$13.00

$4.95

$7.05

Maryland

Montgomery County (Covered employers: Employers with 10 or fewer employees)

7/1/2020

$13.00

$4.00

$9.00

 

Montgomery County (Employers that have 11 or more employees and:
• are general industry employers with 50 or fewer employees;
• have tax-exempt status under federal law; or
• provide certain community or home health service)

7/1/2020

$13.25

$4.00

$9.25

 

Montgomery County (Covered employers: General industry employers with 51 or more employees)

7/1/2020

$14.00

$4.00

$10.00

Minnesota

Minneapolis (Employers with 100 or fewer employees)

7/1/2020

$11.75

N/A

N/A

 

Minneapolis (Employers with 101 or more employees)

7/1/2020

$13.25

N/A

N/A

 

St. Paul (Employers with five or fewer workers)

7/1/2020

$9.25

N/A

N/A

 

St. Paul (Employers with more than five but fewer than 101 workers)

7/1/2020

$10.00

N/A

N/A

 

St. Paul (Employers with more than 100 but fewer than 10,001 workers)

7/1/2020

$11.50

N/A

N/A

 

St. Paul  (Employers with more than 10,000 workers)

7/1/2020

$12.50

N/A

N/A

Oregon

Nonurban Counties

7/1/2020

$11.50

N/A

N/A

 

Portland Metro

7/1/2020

$13.25

N/A

N/A

 


related