Minimum wage increase erased by new payroll tax - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Minimum wage increase erased by new payroll tax

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IRONTON, Ohio -

Ohio's lowest paid workers are getting a bump in pay this year, only to have it muted by increased payroll tax

The state's 15-cent minimum wage increase went into effect on Wednesday, just after Congress passed a two-percent payroll tax as part of a deal to push back America's "fiscal cliff."

Ohio's minimum wage is now $7.85 an hour, after state labor officials adjusted it for inflation.

The increase means an extra dollar a day, or $288 a year, for full-time minimum wage workers.

Business owners are having to spend thousands to accommodate the increase that isn't life-changing for workers.

For a minimum wage worker, additional taxes are roughly the same amount as the pay increase... About 300 dollars a year.