Scheduled minimum wage and gas tax increases, as well as state-run retirement plans, will impact small business owners.
3 New Laws You Should Know About
Friday, July 1, was the day several new laws went into effect. Here are three that small businesses should be aware of.
Minimum Wage
In 2014, legislators approved increases to the minimum wage that will take place gradually over several years. On July 1, the base wage rose from $8.25 to $8.75 per hour, and it is scheduled to increase again to $9.25 next year and again to $10.10 in July 2018.
Gas Tax
Maryland’s gas tax is now nine-tenths of a cent higher, at 33.5 cents per gallon. This increase is part of a new law that was passed in 2013 and included a per-gallon tax increase and a new sales and use tax. The sales tax rate will phase in to a maximum of 5 percent based on the average annual price of a gallon of gas. The 2013 law also indexes future annual gas tax increases to the inflation rate, with a cap of an 8 percent increase in any year.
While gas prices have been on a downward trend since the 2013 law was passed, the increases do create an uneven playing field for gas stations located near the borders of Virginia, Delaware, and Washington, D.C., where the gas taxes are lower.
Retirement Plans
For workers who don’t have access to a workplace savings program with their employer, a state-sponsored retirement savings plan is now in effect. The law applies to employers who use an automated payroll system, but don’t offer a retirement savings program. IRAs would be created for these workers, who would need to make contributions to the account and could opt out of the program.
NFIB/MD opposed this law and spoke out with concerns about the precedent it sets and what could come next, such as making employer contributions mandatory.
“It’s our position that it still puts government in the position of picking winners and losers,” Mike O’Halloran, NFIB/MD state director, told The Baltimore Sun. “That’s something that should be left to the private sector.”
