Loading...
In this piece, we highlight some of the key changes facing our industry in a series called What’s New. While this spotlight does not provide legal advice, it does seek to alert our clients and readers to the myriad of issues and legislative changes facing the entertainment industry.
The updated 2024 edition of What’s New includes things like minimum wage increases, federal tax and retirement limits, and state loan-out withholding rates. If you have any questions or would like to learn more, contact us at [email protected].
What’s New Across the United States
New minimum wage increases
| State | 2024 rate (per hour) | Effective date |
| Alabama | $7.25 | |
| Alaska | $11.73 | Jan. 1, 2024 |
| Arizona | $14.35 | Jan. 1, 2024 |
| Arkansas | $11.00 | Jan. 1, 2021 |
| California | $16.00 | Jan. 1, 2024 |
| Colorado | $14.42 | Jan. 1, 2024 |
| Connecticut | $15.69 | Jan. 1, 2024 |
| Delaware | $13.25 | Jan. 1, 2024 |
| Florida | $12.00 | Sept. 30, 2023 |
| Georgia | $7.25 | |
| Hawaii | $14.00 | Jan. 1, 2024 |
| Idaho | $7.25 | |
| Illinois | $14.00 | Jan. 1, 2024 |
| Indiana | $7.25 | |
| Iowa | $7.25 | |
| Kansas | $7.25 | |
| Kentucky | $7.25 | |
| Louisiana | $7.25 | |
| Maine | $14.15 | Jan. 1, 2024 |
| Maryland | $15.00 | Jan. 1, 2024 |
| Massachusetts | $15.00 | Jan. 1, 2023 |
| Michigan | $10.33 | Jan. 1, 2024 |
| Minnesota – Small employers (100 or fewer employees) | $8.85 | Jan. 1, 2024 |
| Minnesota – Large employers (101 or more employees) | $10.85 | Jan. 1, 2024 |
| Mississippi | $7.25 | |
| Missouri | $12.30 | Jan. 1, 2024 |
| Montana | $10.30 | Jan. 1, 2024 |
| Nebraska | $12.00 | Jan. 1, 2024 |
| Nevada – Employers who do provide employee benefits | $10.25 | July 1, 2023 |
| Nevada – Employers who do not provide employee benefits | $11.25 | July 1, 2023 |
| New Jersey – Large employers (six or more) | $15.13 | Jan. 1, 2024 |
| New Jersey – Small employers (fewer than six employees) and seasonal employees | $13.73 | Jan. 1, 2024 |
| New Hampshire | $7.25 | |
| New Mexico | $12.00 | Jan. 1, 2023 |
| New York | $15.00 | Jan. 1, 2024 |
| North Carolina | $7.25 | |
| North Dakota | $7.25 | |
| Ohio | $10.45 | Jan. 1, 2024 |
| Oklahoma | $7.25 | |
| Oregon (Standard) | $14.20 | July 1, 2023 |
| Oregon (Portland Metro) | $15.45 | July 1, 2023 |
| Oregon (Nonurban Counties) | $13.20 | July 1, 2023 |
| Pennsylvania | $7.25 | |
| Puerto Rico | $9.50 | July 1, 2023 |
| Rhode Island | $14.00 | Jan. 1, 2024 |
| South Carolina | $7.25 | |
| South Dakota | $11.20 | Jan. 1, 2024 |
| Tennessee | $7.25 | |
| Texas | $7.25 | |
| Utah | $7.25 | |
| Vermont | $13.67 | Jan. 1, 2024 |
| Virginia | $12.00 | Jan. 1, 2023 |
| Washington | $16.28 | Jan. 1, 2024 |
| West Virginia | $8.75 | |
| Wisconsin | $7.25 | |
| Wyoming | $7.25 |
| Locality | 2024 rate (per hour) | Effective date |
| Flagstaff, AZ | $17.40 | Jan. 1, 2024 |
| Tucson, AZ | $14.25 | Jan. 1, 2024 |
| Alameda, CA | $16.52 | July 1, 2023 |
| Belmont, CA | $17.35 | Jan. 1, 2024 |
| Berkeley, CA | $18.07 | July 1, 2023 |
| Burlingame, CA | $17.03 | Jan. 1, 2024 |
| Cupertino, CA | $17.75 | Jan. 1, 2024 |
| Daly City, CA | $16.62 | Jan. 1, 2024 |
| El Cerrito, CA | $17.92 | Jan. 1, 2024 |
| Emeryville, CA | $18.67 | July 1, 2023 |
| East Palo Alto, CA | $17.10 | Jan. 1, 2024 |
| Foster City, CA | $17.00 | Jan. 1, 2024 |
| Fremont, CA | $16.80 | July 1, 2023 |
| Halfmoon Bay, CA | $17.01 | Jan. 1, 2024 |
| Hayward, CA (26 or more employees) | $16.90 | Jan. 1, 2024 |
| Hayward, CA (25 or fewer employees) | $16.00 | Jan. 1, 2024 |
| Los Altos, CA | $17.75 | Jan. 1, 2024 |
| Los Angeles City, CA | $16.78 | July 1, 2023 |
| Los Angeles County, CA (Unincorporated LA County) | $16.90 | July 1, 2023 |
| Malibu, CA | $16.90 | July 1, 2023 |
| Menlo Park, CA | $16.70 | Jan. 1, 2024 |
| Milpitas, CA | $17.20 | July 1, 2023 |
| Mountain View, CA | $18.75 | Jan. 1, 2024 |
| Novato, CA (100 or more employees) | $16.86 | Jan. 1, 2024 |
| Novato, CA (26-99 employees) | $16.60 | Jan. 1, 2024 |
| Novato, CA (25 employees or fewer) | $16.04 | Jan. 1, 2024 |
| Oakland, CA | $16.50 | Jan. 1, 2024 |
| Palo Alto, CA | $17.80 | Jan. 1, 2024 |
| Pasadena, CA | $16.93 | July 1, 2023 |
| Petaluma, CA | $17.45 | Jan. 1, 2024 |
| Redwood City, CA | $17.70 | Jan. 1, 2024 |
| Richmond, CA | $17.20 | Jan. 1, 2024 |
| San Carlos, CA | $16.87 | Jan. 1, 2024 |
| San Diego, CA | $16.85 | Jan. 1, 2024 |
| San Francisco, CA | $18.07 | July 1, 2023 |
| South San Francisco, CA | $17.25 | Jan. 1, 2024 |
| San Jose, CA | $17.55 | Jan. 1, 2024 |
| San Leandro, CA | $15.50 | Jan. 1, 2023 |
| San Mateo, CA | $17.35 | Jan. 1, 2024 |
| San Mateo County, CA (Unincorporated San Mateo County) | $17.06 | Jan. 1, 2024 |
| Santa Clara, CA | $17.75 | Jan. 1, 2024 |
| Santa Monica, CA – Small employers (25 or fewer employees) | $16.90 | July 1, 2023 |
| Santa Monica, CA – Large employers (26 or more employees) | $16.90 | July 1, 2023 |
| Santa Rosa, CA | $17.45 | Jan. 1, 2024 |
| Sonoma, CA (25 or fewer employees) | $16.56 | Jan. 1, 2024 |
| Sonoma, CA (26 or more employees) | $17.60 | Jan. 1, 2024 |
| Sunnyvale, CA | $18.55 | Jan. 1, 2024 |
| West Hollywood, CA | $19.08 | July 1, 2023 |
| Boulder County, CO (Only unincorporated areas) | $15.69 | Jan. 1, 2024 |
| Denver, CO | $18.29 | Jan. 1, 2024 |
| Edgewater, CO (New) | $15.02 | Jan. 1, 2024 |
| District of Columbia | $17.00 | July 1, 2023 |
| Chicago, IL (4-20 employees) | $15.00 | July 1, 2023 |
| Chicago, IL (21 or more employees) | $15.80 | July 1, 2023 |
| Cook County, IL | $14.00 | Jan. 1, 2024 |
| Portland, ME | $15.00 | Jan. 1, 2024 |
| Rockland, ME | $15.00 | Jan. 1, 2024 |
| Howard County, MD (14 or fewer employees) | $14.00 | Jan. 1, 2024 |
| Howard County, MD (15 or more employees) | $15.00 | Jan. 1, 2023 |
| Montgomery County, MD – Small employers (10 or fewer employees) | $15.00 | Jan. 1, 2024 |
| Montgomery County, MD – Medium employers (11-50 employees) | $15.00 | July 1, 2023 |
| Montgomery County, MD – Large employers (51 or more employees) | $16.70 | July 1, 2023 |
| Minneapolis, MN – Small employers (100 or fewer employees) | $14.50 | July 1, 2023 |
| Minneapolis, MN – Large employers (101 or more employees) | $15.57 | Jan. 1, 2024 |
| St. Paul, MN – Macro employers (more than 10,000 employees) | $15.57 | Jan. 1, 2024 |
| St. Paul, MN – Large employers (101–10,000 employees) | $15.00 | July 1, 2023 |
| St. Paul, MN – Small employers (6-100 employees) | $13.00 | July 1, 2023 |
| St. Paul, MN – Micro employers (5 or fewer employees) | $11.50 | July 1, 2023 |
| Albuquerque, NM – Employers who provide employee benefits | $12.00 | Jan. 1, 2023 |
| Albuquerque, NM – Employers who do not provide employee benefits | $12.00 | Jan. 1, 2023 |
| Bernalillo County, NM | $12.00 | Jan. 1, 2023 |
| Las Cruces, NM | $12.36 | Jan. 1, 2024 |
| City of Santa Fe, NM | $14.03 | Mar. 1, 2023 |
| Santa Fe County, NM | $14.03 | Mar. 1, 2023 |
| New York City, NY | $16.00 | Jan. 1, 2024 |
| Long Island & Westchester, NY | $16.00 | Jan. 1, 2024 |
| Seattle, WA – Small employers with benefits (500 or fewer employees) | $17.25 | Jan. 1, 2024 |
| Seattle, WA – Small employers without benefits (500 or fewer employees) | $19.97 | Jan. 1, 2024 |
| Seattle, WA – Large employers (501 or more employees) | $19.97 | Jan. 1, 2024 |
| Tukwila, WA (More than 500 employees worldwide) | $20.29 | Jan. 1, 2024 |
| Tukwila, WA (15 to 500 employees worldwide or annual gross revenue over $2 million) | $18.29 | Jan. 1, 2024 |
IRS-issued standard mileage rates for 2024
Notice 2023-239, December 14, 2023 – Today, the Internal Revenue Service issued the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2024, the standard mileage rates for the use of a car (also vans, pickups, and panel trucks) will be:
- 67 cents per mile for business purposes
- 21 cents per mile for medical or moving purposes
- 14 cents per mile for charitable purposes
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on variable costs.
Social Security payroll tax limits for 2024
Starting January 1, 2024, the maximum earnings subject to the Social Security payroll tax will increase by $8,400—up to $168,600—from 2023’s $160,200 max. The Social Security Administration (SSA) made the announcement on October 12. The SSA also posted a fact sheet summarizing the 2024 changes.
The taxable wage cap is subject to an automatic cost-of-living adjustment (COLA) each year based on increases in the national average wage index, calculated annually by the SSA.
| Payroll Taxes: Cap on Maximum Earnings | ||
| Type of payroll tax | 2024 maximum earnings | 2023 maximum earnings |
| Social Security | $168,600 | $160,200 |
| Medicare | No limit | No limit |
| Source: Social Security Administration | ||
401(k) limits for 2024
The IRS has just revealed that the contribution limit for 401(k) plans in 2024 will experience a $500 uptick, rising to $23,000 from the previous year’s $22,500.
- The 401(k) contribution limit is $23,000
- The 401(k) catch-up contribution limit remains at $7,500 for those aged 50 and older
Loan-Out withholding tax rate updates for 2024
Colorado Loan-Out Withholding Rate
Colorado loan-out rate will be 4.40% in 2024.
Georgia Loan-Out Withholding Rate
Georgia loan-out rate will decrease to 5.49% for 2024.
Kentucky Loan-Out Withholding Rate
Kentucky loan-out rate will decrease to 4.00% in 2024.
Montana Loan-Out Withholding Rate
Montana loan-out rate will decrease to 5.90% in 2024.
Hawaii Loan-Out Withholding Rate
Maui County, HI loan-out rate will increase to 4.50% in 2024.
What’s New Across Canada
Claim codes
| Province | Claim code | Amount |
| FED | 1 | CA$15,705.00 |
| AB | 1 | CA$21,885.00 |
| BC | 1 | CA$12,580.00 |
| MB | 1 | CA$15,780.00 |
| NB | 1 | CA$13,044.00 |
| NL | 1 | CA$10,818.00 |
| NS | 1 | CA$11,481.00 |
| NT | 1 | CA$17,373.00 |
| NU | 1 | CA$18,767.00 |
| ON | 1 | CA$12,399.00 |
| PE | 1 | CA$13,500.00 |
| QC | A | CA$15,728.00 |
| SK | 1 | CA$18,491.00 |
| YT | 1 | CA$15,705.00 |
CPP / EI limits and more
| Tax | Max earnings | Rate | Max employer premium | Max employee premium |
| CPP | CA$65,000.00 | 5.95 | CA$3,867.50 | |
| CPPE | CA$65,000.00 | 5.95 | CA$3,867.50 | |
| CPP2 | CA$73,200.00 | 4.00 | CA$188.00 | |
| CPPE2 | CA$73,200.00 | 4.00 | CA$188.00 | |
| EI | CA$63,200.00 | 1.66 | CA$1049.12 | |
| EIE | CA$63,200.00 | 2.324 | CA$1,468.77 | |
| QPP | CA$65,000.00 | 6.40 | CA$4,160.00 | |
| QPPE | CA$65,000.00 | 6.40 | CA$4,160.00 | |
| QPP2 | CA$73,200.00 | 4.00 | CA$188.00 | |
| QPPE2 | CA$73,200.00 | 4.00 | CA$188.00 | |
| QEI | CA$63,200.00 | 1.32 | CA$834.24 | |
| QEIE | CA$63,200.00 | 1.848 | CA$1,167.94 | |
| QPIP | CA$94,000.00 | 0.494 | CA$464.36 | |
| QPIPE | CA$94,000.00 | 0.692 | CA$650.48 | |
| EHT | No limit | 1.95 | ||
| QHSF | No limit | 4.26 |
Provincial minimum wages
| Province / Territory | 2023 -2024 rate (per hour) | Effective date |
| Alberta | CA$15.00 | Oct. 1, 2018 |
| Alberta (Under 18 and works 28 hours a week or fewer) | CA$13.00 | June 26, 2019 |
| British Columbia | CA$16.75 | June 1, 2023 |
| Manitoba | CA$15.30 | Oct 1, 2023 |
| New Brunswick | CA$14.75 | April 1, 2023 |
| Newfoundland and Labrador | CA$15.00 | Oct. 1, 2023 |
| Northwest Territories | CA$16.05 | Sept. 1, 2023 |
| Nova Scotia | CA$15.00 | Oct. 1, 2023 |
| Nunavut | CA$16.00 | April 1, 2020 |
| Ontario | CA$16.55 | Oct. 1, 2023 |
| Prince Edward Island | CA$15.00 | Oct. 1, 2023 |
| Prince Edward Island | CA$15.40 | April 1, 2024 |
| Quebec | CA$15.25 | May 1, 2023 |
| Saskatchewan | CA$14.00 | Oct. 1, 2023 |
| Saskatchewan | CA$15.00 | Oct. 1, 2024 |
| Yukon | CA$16.77 | April 1, 2023 |
| Federal | CA$16.65 | April 1, 2023 |
WCB maximum assessable earnings
| Province | WCB maximum assessable earnings | Province | WCB maximum assessable earnings |
| Alberta | CA$102,100.00 | Nunavut | CA$110,600.00 |
| British Columbia | CA$116,700.00 | Ontario | CA$112,500.00 |
| Manitoba | CA$160,510.00 | Prince Edward Island | CA$78,400.00 |
| New Brunswick | CA$76,900.00 | Quebec | CA$94,000.00 |
| Newfoundland & Labrador | CA$76,955.00 | Saskatchewan | CA$99,945.00 |
| Nova Scotia | CA$72,500.00 | Yukon | CA$102,071.00 |
| Northwest Territories | CA$110,600.00 |
