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2021 Year-End Tax Alert

December 30, 2021

Reminder! New Tax Laws Coming into Effect in 2022.

Alert
Generic tax alert image

With tax year 2021 coming to an end, there are several new laws becoming effective on January 1, 2022. See below for a brief synopsis of the upcoming laws along with federal, state, and local tax updates.

Federal Updates

The Social Security Administration (SSA) announced the Social Security wage base limit will increase to $147,000 for tax year 2022 an increase of $4,200 from $142,800, in 2021.

The Social Security and Medicare tax for tax year 2022 will remain unchanged. The Social security tax rate remains at 6.2% for 2022 up to the Social Security wage base limit. The maximum social security tax employees and employers will pay in 2022 is $9,114.00, an increase of $260.40 from tax year 2021.

The Medicare tax rate for tax year 2022 remains at 1.45% and applies to all covered earnings for employees and employers. There is no wage base limit for Medicare.

In addition, if an individual’s earned income exceeds $200,000 ($250,000 for married couples filing jointly), the excess income amount is subject to additional Medicare tax rate of 0.9%.

Please continue below to view additional changes to state unemployment insurance, minimum wage & paid family leave rates coming into effect January 1, 2022.

State Unemployment Insurance Wage Base Limits Effective January 1, 2022

Jurisdiction

2021 SUI Wage base

2022 SUI Wage base

Jurisdiction

2021 SUI Wage base

2022 SUI Wage base

Alabama

$8,000.00

$8,000.00  

Montana

$35,300.00

$38,100.00

Alaska

$43,600

$45,200

Nebraska

$9,000.00

$9,000/$24,000-For Employers Assessed at Highest Tax Rate

Arizona

$7,000.00

$7,000.00

Nevada

$33,400.00

$36,600.00

Arkansas

$10,000.00

$10,000.00

New Hampshire

$14,000.00

$14,000.00 

CA SDI

$128,298.00

$145,600.00

New Jersey

$36,200.00

$39,800.00

California

$7,000.00

$7,000.00

New Jersey TDI EE

$138,200.00

$151,900.00

Colorado

$13,600.00

$17,000.00

New Mexico

$27,000.00

$28,700.00

Connecticut

$15,000.00

$15,000.00

New York

$11,800.00

$12,000.00

Delaware

$16,500.00

$14,500.00**

North Carolina

$26,000.00

$28,000.00

District of Columba

$9,000.00

$9,000.00 

North Dakota

$38,500.00

$38,400.00

Federal

$142,800.00

$147,000.00

Ohio

$9,000.00

$9,000.00

Florida

$7,000.00

$7,000.00 

Oklahoma

$24,000.00

24,800.00

Georgia

$9,500.00

$9,500.00 

Oregon

$43,800.00

$47,700.00

Hawaii

$47,400.00

$51,600.00

Pennsylvania

$10,000.00

$10,000.00

Idaho

$43,000.00

$46,500.00

Rhode Island

$24,600.00

 $24,600.00

Illinois

$12,960.00

$12,960.00

South Carolina

$14,000.00

$14,000.00

Indiana

$9,500.00

$9,500.00 

South Dakota

$15,000.00

$15,000.00 

Iowa

$32,400.00

$34,800.00

Tennessee

$7,000.00

$7,000.00 

Kansas

$14,000.00

$14,000.00

Texas

$9,000.00

$9,000.00

Kentucky

$10,800

$11,100.00

Utah

$38,900.00

$41,600.00

Louisiana

$7,700.00

$7,700.00

Vermont

$14,100.00

$15,500.00 

Maine

$12,000.00

$12,000.00

Virgin Islands

$32,500.00

$30,800.00 

Maryland

$8,500.00

$8,500.00

Virginia

$8,000.00

$8,000.00 

Massachusetts

$15,000.00

$15,000.00

Washington

$56,500.00

$62,500.00

Michigan

$9,500.00

$9,500.00

West Virginia

$12,000.00

$9,000.00

Minnesota

$35,000.00

$38,000.00

Wisconsin

$14,000.00

$14,000.00

Mississippi

$14,000.00

$14,000.00 

Wyoming

$27,300.00

$27,700.00 

Missouri

$11,000.00

$11,000.00

 

State Minimum Wage Rates Effective January 1, 2022

Jurisdiction

2021 Minimum Wage

2022 Minimum Wage

Jurisdiction

2021 Minimum Wage

2022 Minimum Wage

Alabama

$7.25

$7.25

Missouri

$10.30

$11.15

Alaska

$10.34

$10.34

Montana

$8.75

$9.20

Arizona

$12.50

$12.80

Nebraska

$9.00

$9.00

Arkansas

$11.00

$11.00

Nevada

$9.75, $8.75 w/ health benefits

$10.50, $9.50 w/ health benefits

California

$14(large employer) & $13(small employer)

$15 (large employer) & $14 (small employer)

New Hampshire

$7.25

$7.25

Colorado

$12.32

$12.56

New Jersey

$12(large employer) & $11 (small employer)

$13(large employer) & $11.90(small employer)

Connecticut

$13.00

$14.00

New Mexico

$10.50

$11.50

Delaware

$9.25

$10.50

New York

New York City employers: $15; Nassau, Suffolk, Westchester counties, $14; the rest of the state, $12.50

$15.00 New York City, Nassau, Suffolk, & Westchester counties; the rest of the state: $13.20

District of Columbia

$15.20

$15.20

North Carolina

$7.25

$7.25

Federal

$7.25

$7.25

North Dakota

$7.25

$7.25

Florida

$10.00

$11.00

Ohio

$8.80

$9.30

Georgia

$5.15

$5.15

Oklahoma

$7.25

$7.25

Hawaii

$10.10

$10.10

Oregon

Metro: $14 
Standard: $12.75

Metro: $14.75 
Standard: $13.50

Idaho

$7.25

$7.25

Pennsylvania

$7.25

$7.25

Illinois

$11.00

$12.00

Rhode Island

$11.50

$12.25

Indiana

$7.25

$7.25

South Carolina

$7.25

$7.25

Iowa

$7.25

$7.25

South Dakota

$9.45

$9.95

Kansas

$7.25

$7.25

Tennessee

$7.25

$7.25

Kentucky

$7.25

$7.25

Texas

$7.25

$7.25

Louisiana

$7.25

$7.25

Utah

$7.25

$7.25

Maine

$12.15

$12.75

Vermont

$11.75

$12.55

Maryland

$11.75 (large employer) & $11.60 (small employer)

$12.50 (large employer) & $12.20 (small employer)

Virginia

$9.50

$11.00

Massachusetts

$13.50

$14.25

Washington

$13.69

$14.49

Michigan

$9.65

$9.87

West Virginia

$8.75

$8.75

Minnesota

$10.08 (large employer) & $8.21 (small employer)

$10.33 (large employer) & $8.42 (small employer)

Wisconsin

$7.25

$7.25

Mississippi

$7.25

$7.25

Wyoming

$5.15

$5.15

 

Local Minimum Wage Rates Effective January 1, 2022

State

Locality

Minimum Wage

State

Locality

Minimum Wage

AZ

Flagstaff

$15.50

CA

Santa Rosa

$15.85

CA

Belmont

$16.20

CA

Sonoma

$16.00/$15.00

CA

Cupertino

$16.40

CO

Denver

$15.87

CA

Daly City

$15.53

FL

North Miami Beach

$15.00

CA

Half Moon Bay

$15.56

ME

Portland

$13.00

CA

Hayward

$15.56

ME

Rockland City

13

CA

Novato

$15.77/$15.53

NM

Las Cruces

$11.50

CA

Petaluma

$15.85

NY

Long Island

$15.00

CA

Richmond

$15.54

NY

Rest of NYS

$13.20

CA

San Diego

$15.00

NY

Westchester

$15.00

CA

San Francisco

$15.55

WA

SeaTac

$16.57 to $17.53

CA

San Jose

$16.20

WA

Seattle

$17.27 (large employers) / $15.75 (small employers)

CA

San Mateo

$16.20

WA

Tacoma

$14.49

CA

Santa Clara

$16.40

 

 

 

 

Paid Family Leave Rates Effective January 1, 2022

Jurisdiction

2022 Rate

Paid By

Family

California​​

1.2%​​

Employees​​

 

Connecticut​​

0.5%​​

Employees​​

 

Massachusetts​​

0.68%​​

Employer & Employees​​

 

 

Medical = 0.56%

25 or more employees 

 

 

Family = 0.12%

Medical

Family

 

Employer

 0.336%

0%

 

 

0.56%

 

 

Employee

 0.224%

0.12%

 

 

25 or less employees

 

 

 

Medical

Family

 

Employer

0%

0%

 

Employee

0.224%

0.12%

New Jersey​​

0.0014

Employees​​

 

New York​​

0.511%​​

Employees​​

 

Rhode Island​​

1.1%​​

Employees​​

 

District Of Columbia​​

0.62%​​

Employees​​

 

Washington​​

0.6%​​

Employers & Employees​​

 

 

 

50 or more employees

 
 

Employer

26.78%

 
 

Employee

73.22%

 

 

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.

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