New Laws in MA May Boost Your Bank Account in 2016

Many Massachusetts residents will be seeing more money this year — both in their paycheck and at tax time — thanks to law changes taking affect Jan. 1, 2016.

Only three new laws are set to go into affect in Massachusetts in January, and all will benefit residents’ wallets.

Minimum Wage Increase

Those making the least in Massachusetts are about to get a raise. The statewide minimum wage will increase to $10/hour, up from $9/hour, effective Jan. 1. That puts Massachusetts ahead of the federal minimum wage of $7.25/hour.

The minimum wage law applies to all employees except those “being rehabilitated or trained in charitable, educational, or religious institutions; members of religious orders; agricultural, floricultural, and horticultural workers; those in professional service; and outside salespersons not reporting to or visiting their office daily,” the law reads.”

Service workers whose income is supplemented by tips will also get a bump, up 35 cents to $3.35/hour. The minimum wage for agricultural workers will remain at $8/hour.

It isn’t the last scheduled increase in the minimum wage. The law calls for another $1 raise in 2017, which will bring the statewide minimum to $11/hour.

Get a Larger Tax Return

Lower-income residents in Massachusetts will be getting a bit more in their tax returns, as well. The state has increased the percentage of the federal Earned Income Tax Credit Massachusetts residents can claim in the commonwealth.

The Earned Income Tax Credit allows low-income residents to get a return even if they didn’t make enough to owe federal income taxes. Single residents without children qualify for the credit if they make less than $14,590 a year. With one child, the income limit jumps to $36,511. With two children, residents can claim the credit while making up to $43,756 a year.

Massachusetts allows residents who qualify for the federal credit to also get a state payout. Residents who qualify and apply will now receive 23 percent of their federal credit from Massachusetts, up from 15 percent.

Governor’s Council Raise

Some of the governor’s top advisers are also getting a raise. The Massachusetts Governor’s Council, also known as the Executive Council, is comprised of eight elected representatives who meet once a week to advise the governor, approve expenditures and confirm gubernatorial appointments, including judges, clerk-magistrates and Parole Board members.

The eight councilors will get a bump in salary, up to $36,025 a year. Previously, they made just more than $26,000 a year.