Governor Brown has signed AB 10 which will increase the minimum wage from $8 an hour to $9 an hour on July 1, 2014 and again to $10 an hour starting January 1, 2016.
An unintended consequence of the legislation will be an increase in the amount of Enterprise Zone tax credits qualified employers will be able to claim. Employers may still claim credits for qualified employees hired through December 31, 2013 for up to five years of employment. The credit is calculated as a function of the hourly wage with a limit of 150% of the minimum wage per hour. Currently, the maximum credit an employer can claim is $12 for an hour of qualified work; starting in July of next year that cap will increase to $13.50.
In accordance with Circular 230 Disclosure
Mr. Larson has advised clients across the country in a variety of federal, state and local tax matters. His experience includes a wide range of industries including manufacturing and software, banking and finance, biotechnology, hospital management, non-profit organizations, commercial office leasing, restaurants, education, security services, oil and gas, telecommunications, paper manufacturing, and sports and entertainment.
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