As of July 1, 2017, the City of Santa Monica will implement changes to its sales tax and minimum wage.
For small employers with 1-25 employees, the wage will be $10.50 per hour.
For large employers with 26 or more employees, the minimum wage will increase to $12.00 per hour.
In addition, for employee of hotels, the minimum wage will increase to $15.66 per hour.
Finally, the sales tax in the City of Santa Monica will increase to 10.25%, making it one of the highest in the nation. California has the highest state-level sales tax rate, at 7.25%.
The five states with the highest average combined state and local sales tax rates are Louisiana (9.98 percent), Tennessee (9.46 percent), Arkansas (9.30 percent), Alabama (9.01 percent), and Washington (8.92 percent).
The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.35 percent), Wyoming (5.40 percent), Wisconsin (5.42 percent), and Maine (5.5 percent).
In order to comply with these updates, Santa Monica employers should ensure that their minimum wage law posters are up-to-date, and that they issue an updated Notice to Employee (as required by California Labor Code section 2810.5) that reflects each employees’ increase in wages. Employers should also check with their payroll company to confirm that payroll and wage statements reflect these increases as of the first pay period in July.
|Overwhelmed with these changes? Need assistance in navigating the maze of Employment law? Contact The Grady Firm for assistance with counseling and training on how to become compliant with state and federal laws.
In addition, The Grady Firm’s attorney assist with drafting/updating Employee Handbooks, hiring/firing, and sexual harassment and leadership training.
*This article is for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. This article does not make any guarantees as to the outcome of a particular matter, as each matter has its own set of circumstances and must be evaluated individually by a licensed attorney.