Minimum wage rates

Minimum wage rates can be defined for US federal and state tax authorities. In the US, HR Payroll uses the appropriate minimum wage in the calculation of Fair Labor Standards Act (FLSA) overtime and income protected from garnishment.

During overtime calculation, if the employee's regular rate is less than either the federal or state minimum wage, the regular rate is replaced with the greater minimum wage.

Before minimum wage rates can be defined, a federal or state tax authority must be defined.