American Payroll Association (APA) Basic Guide to Payroll, 2013 Edition
It's more important than ever to be in compliance with payroll laws and regulations! How do you stay in compliance and avoid penalties? The APA Basic Guide to Payroll is written to make understanding the laws and regulations as easy as possible. And this single-volume guide is filled with tools to help you apply the law and make proper calculations – with ease!
Effective January 1, 2013, Colorado’s minimum wage will increase to $7.78 per hour, up from the 2012 rate of $7.64 per hour. Also, the tipped employee wage will rise to $4.76 per hour, up from the current $4.62 per hour.
Article XVIII, Section 15, of the Colorado Constitution requires the Colorado minimum wage to be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. No more than $3.02 per hour in tip income may be used to offset the minimum wage of tipped employees.
In accordance with the constitutional inflation adjustment requirement, the Director of the Division of Labor has adopted Colorado Minimum Wage Order Number 28 to reflect the new state minimum wage. If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Federal minimum wage is currently $7.25 per hour, which is lower than the Colorado state minimum wage of $7.78. Therefore, based upon current information, covered employers in Colorado will have to pay their employees the higher value of $7.78 per hour under Colorado law beginning January 1, 2013.
Also, if an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage for tipped employees. Federal tipped minimum wage is currently $2.13 per hour, which is lower than the Colorado tipped minimum wage of $4.76 per hour. Therefore, based upon current information, covered employers in Colorado will have to pay their tipped employees the higher value of $4.76 per hour under Colorado law beginning January 1, 2013. If an employee's tips combined with the employer's cash wage of at least $4.76 per hour do not equal the minimum hourly wage, the employer must make up the difference in cash wages. (http://www.colorado.gov/cs/Satellite/CDLE-LaborLaws/CDLE/1248095305416; Passage of proposed 2013 rate confirmed by phone call to Colorado Department of Labor.)
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