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.
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.
Jurisdiction | SUI Wage base | Jurisdiction | SUI Wage base |
Alabama | $8,000.00 (2021) $8,000.00 (2022) | Montana | $35,300.00 (2021) $38,100.00 (2022) |
Alaska | $43,600 (2021) $45,200 (2022) | Nebraska | $9,000.00 (2021) $9,000/$24,000-For Employers Assessed at Highest Tax Rate (2022) |
Arizona | $7,000.00 (2021) $7,000.00 (2022) | Nevada | $33,400.00 (2021) $36,600.00 (2022) |
Arkansas | $10,000.00 (2021) $10,000.00 (2022) | New Hampshire | $14,000.00 (2021) $14,000.00 (2022) |
CA SDI | $128,298.00 (2021) $145,600.00 (2022) | New Jersey | $36,200.00 (2021) $39,800.00 (2022) |
California | $7,000.00 (2021) $7,000.00 (2022) | New Jersey TDI EE | $138,200.00 (2021) $151,900.00 (2022) |
Colorado | $13,600.00 (2021) $17,000.00 (2022) | New Mexico | $27,000.00 (2021) $28,700.00 (2022) |
Connecticut | $15,000.00 (2021) $15,000.00 (2022) | New York | $11,800.00 (2021) $12,000.00 (2022) |
Delaware | $16,500.00 (2021) $14,500.00** (2022) | North Carolina | $26,000.00 (2021) $28,000.00 (2022) |
District of Columba | $9,000.00 (2021) $9,000.00 (2022) | North Dakota | $38,500.00 (2021) $38,400.00 (2022) |
Federal | $142,800.00 (2021) $147,000.00 (2022) | Ohio | $9,000.00 (2021) $9,000.00 (2022) |
Florida | $7,000.00 (2021) $7,000.00 (2022) | Oklahoma | $24,000.00 (2021) 24,800.00 (2022) |
Georgia | $9,500.00 (2021) $9,500.00 (2022) | Oregon | $43,800.00 (2021) $47,700.00 (2022) |
Hawaii | $47,400.00 (2021) $51,600.00 (2022) | Pennsylvania | $10,000.00 (2021) $10,000.00 (2022) |
Idaho | $43,000.00 (2021) $46,500.00 (2022) | Rhode Island | $24,600.00 (2021) $24,600.00 (2022) |
Illinois | $12,960.00 (2021) $12,960.00 (2022) | South Carolina | $14,000.00 (2021) $14,000.00 (2022) |
Indiana | $9,500.00 (2021) $9,500.00 (2022) | South Dakota | $15,000.00 (2021) $15,000.00 (2022) |
Iowa | $32,400.00 (2021) $34,800.00 (2022) | Tennessee | $7,000.00 (2021) $7,000.00 (2022) |
Kansas | $14,000.00 (2021) $14,000.00 (2022) | Texas | $9,000.00 (2021) $9,000.00 (2022) |
Kentucky | $10,800 (2021) $11,100.00 (2022) | Utah | $38,900.00 (2021) $41,600.00 (2022) |
Louisiana | $7,700.00 (2021) $7,700.00 (2022) | Vermont | $14,100.00 (2021) $15,500.00 (2022) |
Maine | $12,000.00 (2021) $12,000.00 (2022) | Virgin Islands | $32,500.00 (2021) $30,800.00 (2022) |
Maryland | $8,500.00 (2021) $8,500.00 (2022) | Virginia | $8,000.00 (2021) $8,000.00 (2022) |
Massachusetts | $15,000.00 (2021) $15,000.00 (2022) | Washington | $56,500.00 (2021) $62,500.00 (2022) |
Michigan | $9,500.00 (2021) $9,500.00 (2022) | West Virginia | $12,000.00 (2021) $9,000.00 (2022) |
Minnesota | $35,000.00 (2021) $38,000.00 (2022) | Wisconsin | $14,000.00 (2021) $14,000.00 (2022) |
Mississippi | $14,000.00 (2021) $14,000.00 (2022) | Wyoming | $27,300.00 (2021) $27,700.00 (2022) |
Missouri | $11,000.00 (2021) $11,000.00 (2022) |
Jurisdiction | Minimum Wage | Jurisdiction | Minimum Wage |
Alabama | $7.25 (2021) $7.25 (2022) | Missouri | $10.30 (2021) $11.15 (2022) |
Alaska | $10.34 (2021) $10.34 (2022) | Montana | $8.75 (2021) $9.20 (2022) |
Arizona | $12.50 (2021) $12.80 (2022) | Nebraska | $9.00 (2021) $9.00 (2022) |
Arkansas | $11.00 (2021) $11.00 (2022) | Nevada | $9.75, $8.75 w/ health benefits (2021) $10.50, $9.50 w/ health benefits (2022) |
California | $14(large employer) & $13(small employer) (2021) $15 (large employer) & $14 (small employer) (2022) | New Hampshire | $7.25 (2021) $7.25 (2022) |
Colorado | $12.32 (2021) $12.56 (2022) | New Jersey | $12(large employer) & $11 (small employer) (2021) $13(large employer) & $11.90(small employer)(2022) |
Connecticut | $13.00 (2021) $14.00 (2022) | New Mexico | $10.50 (2021) $11.50 (2022) |
Delaware | $9.25 (2021) $10.50 (2022) | New York | New York City employers: $15; Nassau, Suffolk, Westchester counties, $14; the rest of the state, $12.50 (2021) $15.00 New York City, Nassau, Suffolk, & Westchester counties; the rest of the state: $13.20 (2022) |
District of Columbia | $15.20 (2021) $15.20 (2022) | North Carolina | $7.25 (2021) $7.25 (2022) |
Federal | $7.25 (2021) $7.25 (2022) | North Dakota | $7.25 (2021) $7.25 (2022) |
Florida | $10.00 (2021) $11.00 (2022) | Ohio | $8.80 (2021) $9.30 (2022) |
Georgia | $5.15 (2021) $5.15 (2022) | Oklahoma | $7.25 (2021) $7.25 (2022) |
Hawaii | $10.10 (2021) $10.10 (2022) | Oregon | Metro: $14 (2021) Metro: $14.75 (2022) Standard: $12.75 (2021) Standard: $13.50 (2022) |
Idaho | $7.25 (2021) $7.25 (2022) | Pennsylvania | $7.25 (2021) $7.25 (2022) |
Illinois | $11.00 (2021) $12.00 (2022) | Rhode Island | $11.50 (2021) $12.25 (2022) |
Indiana | $7.25 (2021) $7.25 (2022) | South Carolina | $7.25 (2021) $7.25 (2022) |
Iowa | $7.25 (2021) $7.25 (2022) | South Dakota | $9.45 (2021) $9.95 (2022) |
Kansas | $7.25 (2021) $7.25 (2022) | Tennessee | $7.25 (2021) $7.25 (2022) |
Kentucky | $7.25 (2021) $7.25 (2022) | Texas | $7.25 (2021) $7.25 (2022) |
Louisiana | $7.25 (2021) $7.25 (2022) | Utah | $7.25 (2021) $7.25 (2022) |
Maine | $12.15 (2021) $12.15 (2022) | Vermont | $11.75 (2021) $12.55 (2022) |
Maryland | $11.75 (large employer) & $11.60 (small employer) (2021) $12.50 (large employer) & $12.20 (small employer) (2022) | Virginia | $9.50 (2021) $11.00 (2022) |
Massachusetts | $13.50 (2021) $14.25 (2022) | Washington | $13.69 (2021) $14.49 (2022) |
Michigan | $9.65 (2021) $9.87 (2022) | West Virginia | $8.75 (2021) $8.75 (2022) |
Minnesota | $10.08 (large employer) & $8.21 (small employer) (2021) $10.33 (large employer) & $8.42 (small employer) (2022) | Wisconsin | $7.25 (2021) $7.25 (2022) |
Mississippi | $7.25 (2021) $7.25 (2022) | Wyoming | $5.15 (2021) $5.15 (2022) |
Locality | Minimum Wage | Locality | Minimum Wage |
Flagstaff, AZ | $15.50 | Santa Rosa, CA | $15.85 |
Belmont, CA | $16.20 | Sonoma, CA | $16.00/$15.00 |
Cupertino, CA | $16.40 | Denver, CO | $15.87 |
Daly City, CA | $15.53 | North Miami Beach, FL | $15.00 |
Half Moon Bay, CA | $15.56 | Portland, ME | $13.00 |
Hayward, CA | $15.56 | Rockland City, ME | 13 |
Novato, CA | $15.77/$15.53 | Las Cruces, NM | $11.50 |
Petaluma, CA | $15.85 | Long Island, NY | $15.00 |
Richmond, CA | $15.54 | Rest of New York State | $13.20 |
San Diego, CA | $15.00 | Westchester, NY | $15.00 |
San Francisco, CA | $15.55 | SeaTac, WA | $16.57 to $17.53 |
San Jose, CA | $16.20 | Seattle, WA | $17.27 (large employers) / $15.75 (small employers) |
San Mateo, CA | $16.20 | Tacoma, WA | $14.49 |
Santa Clara, CA | $16.40 |
|
|
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.