From January 1st 2023, several measures voted for in the November 22 US elections will come into effect across the country. Azure Global has reviewed these changes and summarised those that will affect the temporary work and payroll sectors below.
Minimum Wage
Almost half the states across the US are taking steps to ensure their citizens benefit from higher wages as the federal minimum wage had remained the same since 2009 – the longest spell without change since the minimum wage was established back in 1938. A minimum wage hike went into effect in Arizona, California, Colorado, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, Ohio, Rhode Island, South Dakota, Vermont and Washington. Meanwhile, workers in Connecticut must wait until 1st June before they see an increase while Nevada and Florida will have to be patient for July 1st or September 30th respectively. New York's non-urban counties commenced the raise on December 31st, 2022. Washington state is one of America's highest paying regions for hourly staff members, with the rate increasing from $14.49 to $15.74 followed by California at $15.50 for all workers where this had previously been $14 for 25 or fewer employees and $15 for employers with 26 or more workers. The highest minimum wage in the US continues to be seen in Washington DC where the minimum wage hiked from $16 to $16.50 on December 31st 2022 and will increase again on 1st July 2023 to $17.
Tax Credits for Electric Vehicles
The Inflation Reduction Act has brought important changes to electric vehicle tax credit regulations, prioritizing North American production and materials. The final assembly of the vehicle and battery components must be produced in the US continent to be eligible for the tax credits, and at least 40% of the minerals used for the battery must be extracted from the US or a country that has free trade with the US. Newly purchased EVs can receive up to $7,500 in credits while used vehicles are eligible for a maximum of 30% of the sale price in credits or $4,000 - whichever is less! Buyers who purchase vehicles in 2023 will have to wait until after they submit their tax returns for the year however from January 1st January 2024, buyers will receive the money at the point of sale if they transfer the credit to their dealership.
If you have opportunities to place temporary workers in the US but aren't sure where to start, get in touch with Azure Global's expert team today at the link below. From payroll services in the USA to HR and visa applications, Azure Global will support you in your American Dream.