Calculate What Constitutionally-Mandated Increases Will Cost Your Business
Senate Concurrent Resolution No. 1 (SCR No. 1) would amend Article 1 of the New Jersey Constitution to mandate an increase in the New Jersey minimum wage to $8.25 per hour from the current rate of $7.25 per hour. SCR No. 1 would also allow for future increases in the state minimum wage in years beyond 2016 by tying the minimum wage to the consumer price index, a measure of inflation.
A higher minimum wage translates directly to higher costs to employers in the forms of more wage compensation and payroll taxes paid on behalf of workers for the same amount of work performed.
This minimum wage calculator estimates the additional financial burden placed on employers under three different scenarios of inflation: 0%, 2% and 4% annual rates of future inflation.
DIRECTIONS: To estimate the potential future costs to your business posed by SCR No. 1, enter the following in yellow:
- # of employees earning the minimum wage at your business
- average # of hours worked per week per employee at your business
- average # of weeks each employee works per year at your business
The NJ minimum wage calculator assumes payroll taxes equal 7.65% of wages: 6.2 percentage points for old age, survivors, and disability insurance, and 1.45 percentage points for Medicare hospital insurance.
Note: Calculator does not account for "escalator costs" which may be incurred from workers earning above $8.25 who may then push for higher wages to maintain the wage structure.
Calculator created by Michael J. Chow of the NFIB Research Foundation in September 2013
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