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In addition, a partnership firm prepares Profit and Loss Appropriation Account to which net profit or It should be noted that profit is appropriated up to the amount available for distribution, i.e., It is determined by preparing Profit and Loss Account. for the year ended……l. Dr. (i) Partners' Salaries/Commission A/cDr.

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New York Governor Kathy Hochul announced an agreement with legislative leaders for the FY2024 New York State Budget on April 27, 2023.  Notably, the deal includes legislation that would increase the state minimum wage rate for the next three years, and index the minimum wage to the consumer price index thereafter.

Minimum Wage Increases

Once adopted, the FY2024 Budget would establish a new statutory minimum wage rate schedule in Section 652 of the Labor Law as follows:

Downstate and Upstate Minimum Wage Increases

The minimum wage in New York is currently split into two state regions:

The legislation maintains these regional distinctions and sets different schedules of increases for both regions.  This legislation, unlike prior New York minimum wage increases, does not distinguish rates based upon employer size or downstate county.

Indexing the Minimum Wage

Starting January 1, 2027, additional annual minimum wage increases would be implemented each year based on the Northeast region measure of consumer price increases for urban wage earners and clerical workers (CPI-W). There would be no increases to the minimum wage if over a period of the prior year, the calculations published by the United States Department of Labor show that:

Adjusted minimum wages are required to be published by the State Department of Labor no later than October 1st of each year.

Adjustments to Salary Thresholds, Allowances, and Gratuities

It is worth noting that minimum wage orders in effect would remain in effect, including wage orders that address minimum salary levels for executive and administrative exemptions, gratuities, and allowances for meals, apparel, etc. As these minimum wage increases take effect, the State Department of Labor would amend the wage orders to increase all monetary amounts (i.e., salary levels and allowances) in the same proportion as the increase in the hourly minimum wage.  The state is expected publish the official amounts of these adjustments.  We calculate the salary threshold in 2024 for downstate would rise to $1,200 weekly, and the upstate salary basis threshold would rise to $1,125 weekly.

The wage for food service workers who receive tips would remain lower than the regular minimum wage by one-third and rounded to the nearest five cents. While the state has not issued its official calculations, our unofficial calculations for tipped food service workers in the Hospitality Industry would be as follows:

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