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2023 Tax Mid Year Review
June 29, 2023
The first half of 2023 has brought about many tax-related legislative changes. Catch up on the latest and how it might affect your business.
The past six months have brought many legislative changes ranging from employment taxes, withholding taxes, and local taxes. Below are summaries of what to expect and prepare for beginning July 1, 2023, through December 31, 2023, including a few retroactive changes.
State Unemployment Insurance Tax Updates
Below is a list of state jurisdictions that either changed or released new unemployment insurance tax information.
State | New Employer Rate | 2023 Experienced Rate | 2023 Wage Base Limit |
New Hampshire | 1.70% | 0.1% to 7.50% | $14,000 |
Tennessee | 2.70% | 0.01%-10.00% | $7,000 |
State Minimum Wage Updates
Below is a list of state jurisdictions changing their state minimum wages rates effective July 1, 2023.
State | Effective Date | Minimum Wage | Minimum Cash Wage | Minimum Credit |
Connecticut | 6/1/2023 | $15.00 | $8.23 (bartenders), $6.38 (others) | $6.77 (bartenders), $8.62(others) |
District of Columbia | 7/1/2023 | $17.00 | $8.00 | $9.00 |
Florida | 9/30/2023 | $12.00 | $8.98 | $3.02 |
Nevada | 7/1/2023 | $11.25 & $10.25 (with health benefits) | N/A | N/A |
Oregon | 7/1/2023 | $14.20 | N/A | N/A |
Puerto Rico | 7/1/2023 | $9.50 | $2.13 | $6.37 |
Local Minimum Wage Updates
Below is a list of local jurisdictions changing their state minimum wages rates effective July 1, 2023.
State | Local Jurisdiction | Minimum Wage | Tipped Minimum Cash | Tipped Credit |
California | Alameda | $16.54 | N/A | N/A |
Berkeley | $18.07 | N/A | N/A | |
Emeryville | $18.67 | N/A | N/A | |
Fremont | $16.80 | N/A | N/A | |
Los Angeles County - City of Los Angeles | $16.78 | N/A | N/A | |
Malibu | $16.90 | N/A | N/A | |
San Francisco | $18.07 | N/A | N/A | |
Santa Monica | $16.90 | N/A | N/A | |
West Hollywood | $19.08 | N/A | N/A | |
Illinois | Chicago | $15.80 (Employers with 21 or more employees) $15.00 (Employers with 4 to 20 employees) | $9.48 (Employers with 21 or more employees) $9.00 (Employers with 4 to 20 employees) | $6.32 (Employers with 21 or more employees) $6 (Employers with 4 to 20 employees) |
Cook County | $13.70 | $8.00 | $5.70 | |
Maryland | Montgomery County | $15.00 | $4.00 | $11.00 |
Minnesota | Minneapolis | $14.50 (small employers) | N/A | N/A |
Paid Family Leave
Below is a list of state jurisdictions changing their Paid Family leave contribution rates.
State | Rate |
District of Columbia | 0.26% |
State Withholding Tax Changes Released Post Year Begin
- Arkansas updated withholding tax tables effective June 1st, 2023.
- Click here for more information.
- Idaho updated withholding tax tables effective May 15, 2023.
- Click here for more information.
- Utah updated withholding tax tables effective June 6th, 2023.
- Click here for more information.
Next Steps
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
Keep Up With Compliance
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
