Bonus vs. Raise: The Tax and Retention Implications Employers Overlook
When you hand an employee a bonus or approve a raise, you probably think you’re making a straightforward financial decision. You’re not. Both choices carry hidden tax consequences, payroll ripple effects, and retention outcomes that most employers never see coming. The difference between these two compensation tools is far more complicated than it appears, and […]
Your Payroll System Needs These OBBBA Updates Before Q1 Closes
The One Big Beautiful Bill Act just changed how your payroll system needs to operate, and Q1 isn’t waiting for you to catch up. New deductions, updated FSA limits, and a brand-new W-2 code aren’t optional adjustments — they’re compliance requirements with real penalties attached. If you’re not sure whether your system’s already configured correctly, […]
How 2026 State Minimum Wage Increases Could Reclassify Your Workforce
Eighteen states are raising minimum wages on January 1, 2026, which will automatically increase salary exemption thresholds and potentially reclassify your exempt employees. Washington’s $17.13/hour minimum wage triggers an $80,168 exempt threshold, while California’s jumps to $70,304. If your currently exempt employees earn below these new state-calculated thresholds, you’ll need to either raise their salaries […]
