---
title: APA Comments on Proposed Increase to Federal Minimum Wage
description: The APA comments on proposals to increase the federal minimum wage.
image: https://www.americanpayroll.org/images/default-source/default-album/minimum-wage.jpg?sfvrsn=8cce12ae_0
---

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By [Alice P. Jacobsohn, Esq.](https://blogs.payroll.org/pay-news-now/author/alice-p-jacobsohn-esq) on Mar 9, 2021 9:00:00 AM

# APA Comments on Proposed Increase to Federal Minimum Wage

The APA Government Relations Task Force Subcommittee on Federal Issues [**asked congressional leaders**](https://www.americanpayroll.org/docs/default-source/2021-government-relations/21b24-Date-Min-wage.pdf) to adopt a phased approach if and when the federal minimum wage is increased. A phased approach will allow payroll managers and their employers time to update their systems and implement the changes.

**Payroll Impacts**

The APA did not take a position on the amount of the federal minimum wage and, instead, focused on payroll impacts. Payroll professionals will need time to:

- Determine whether the federal minimum wage or a higher state or local minimum wage applies
- Assess which employees’ wages must be increased
- Make any necessary adjustments to employee benefits, such as retirement plan contributions
- Consider the effects on employer operations
- Adjust employment tax withholding
- Communicate with appropriate team members about the new minimum wages and employer-implementing measures

In addition, the APA requested that the phased increases occur on January 1 each year to coincide with changes made at the state and local levels and to accommodate payroll processes.

Not a member of APA? Check out the many benefits you get [**when you join**](https://www.americanpayroll.org/membership/all-member-benefits)! 

---

*Alice P. Jacobsohn, Esq. is Director of Government Relations for the APA.*

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