The Colorado Division of Labor and Employment (CDLE) has adopted Minimum Wage Order Number 30, setting a new state minimum wage rate of $8.00 per hour, effective January 1, 2014. Colorado’s Constitution requires the CDLE to adjust the state minimum wage rate annually for inflation based on the Consumer Price Index. The new rate represents a 22-cent-per-hour increase from the 2013 minimum wage of $7.78 per hour. Employers can use no more than $3.02 in tip income to offset minimum wage for tipped employees, taking the minimum wage for tipped employees to $4.98 per hour. The federal minimum wage, a popular topic of late, has been $7.25 per hour since July 24, 2009. Covered employers must obtain and post a new poster displaying the minimum wage increase beginning January 1, 2014. Minimum Wage Order 30 is available on the CDLE’s website by clicking here, a link to the revised poster is expected soon on this page.
In addition, on December 6, 2013, the Internal Revenue Service issued Notice 2013-80 adjusting the 2014 optional standard mileage rate. The standard mileage rate is used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Lower gas prices have resulted in a half-cent decrease for the 2014 rate to 56 cents per mile for business miles driven and 23.5 cents per mile for medical, or moving purposes. The statutory mark for mileage in service of charitable organizations remains 14 cents per mile. Taxpayers always have the option of deducting their actual costs rather than using the standard mileage rates option.