The minimum salary differs depending on the state. Other states such as Georgia and Wyoming pay less in least wages compared to Federal rates. Some professionals and categories of employees are not eligible for minimum wage. The total minimum wage earnings for employees working full time also attract some charges. It depends on the number of exemptions they claim and the amount of federal taxes they pay.
The two types of exemptions are dependency and individual. Each reduces the amount of earnings the government can tax from an employee. There is reduction in the amount of taxable income for the employee, their spouse, and their dependents.
The state where they work is also a key determinant since states' least wages vary. Below, we discuss the various factors determining the total minimum wage for employees.
Related: How Are Salaries Determined? A report by the Economic Policy Institute indicates that 29 states have higher minimum wages than the federal rates.
New Jersey, Arizona, Illinois, Michigan, Missouri and Minnesota are examples of other states with higher minimum wages. According to the Bureau of Labor Statistics , However, some employment categories fall outside the minimum wage laws. Exempt professions include:. The minimum wage laws exempt people working in seasonal and recreational facilities. Some states may fail to recognize the exemption of these employees from the minimum wage.
In such cases, they are subject to the state's minimum wage. People who babysit on an occasional basis do not receive the minimum wage. After completing 90 days or attaining 20 years, they become subject to the minimum wage. Students may work full-time in facilities that have certification from the federal Department of Labor. People that fall under this category include executive, administrative and professional employees.
CFO's and General Managers are executives who manage the entire business or department. They also supervise, promote, hire or fire other employees. Administrative employees include data clerks and administrative assistants. They are responsible for the management and daily operations of a business.
They perform office and administrative tasks. Professional employees are well skilled and learned to offer expertise in specific fields. They include doctors, engineers and lawyers. The state pays these categories of employees on a salary basis. It is regardless of the number of hours spent at work or their job quality.
The law exempts some farm employees from the minimum wage. It includes those working on small farms, those on livestock range and those paid per piece rate.
Agricultural employees closely related to the farm owners by blood are not entitled to a minimum wage. The law exempts salespeople whose commissions total more than half their earnings. The earnings should also be more than one and half times the hourly minimum wage. Employers pay the minimum wage at hourly rates. Thus, the total number of hours spent at work determines the amount of money you take home. Full-time employees work 40 hours or more while part-time employees spend less than 40 hours at work.
The weekly number of work hours may be inconsistent too. Despite these recent increases in state minimum wages, minimum wages at the federal and most state levels are still below the peak of its real value in Whether full-time work at minimum wage keeps a worker out of poverty depends on their family size and whether others in the household work.
Someone who works full time for minimum wage and lives alone will earn above their poverty threshold. For single parents who work minimum wage, however, staying above poverty can be particularly challenging, even with full-time work. Poverty is determined by the U. These thresholds, updated annually, determine how much income a household requires to meet basic needs, such as food and shelter.
A single parent with one child will earn 91 percent of their poverty threshold. The larger the family, the more hours of work are required to stay above poverty with a single minimum-wage income. A single parent working at the current minimum wage with two children would have to work at least 2, hours annually—more than 50 hours each week—to keep the household above poverty. With a minimum wage income, even working full time, many workers will qualify for most federal safety net programs in the United States.
Eligibility guidelines for government assistance are based on the Census Bureau thresholds, but are developed and updated annually by the U. Department of Health and Human Services.
Those with incomes below a certain percentage of their poverty guideline will qualify. Federal assistance programs all have eligibility requirements that are in part based on the proportion of household income to the federal poverty guideline.
For example, the SNAP nutritional assistance program is available to those with a gross household income of up to about percent of their federal poverty guideline. When someone accepts a job offer they have a contract with you as their employer. You must tell HMRC about your new employee on or before their first pay day. To help us improve GOV. It will take only 2 minutes to fill in.
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Minimum wage for different types of work. You can then use this figure to make sure the rate of pay is at least the minimum wage. Print entire guide. Step 1 : Check your business is ready to employ staff. Prepare your business to take on employees.
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