WA SB5873 Reduces Unemployment Insurance Tax Rates for 2022March 17, 2022
Read more about Washington's lowered unemployment insurance tax rates here.
At a Glance
- Legislation SB 5873 reduced the unemployment insurance tax rates for 2022.
- Notices will be delivered prior to first quarter 2022 end.
Introduction On March 11, 2022, the state of Washington passed S.B.5873 which decreases the maximum unemployment cost factor. The bill is effective immediately.
The bill reduces the social tax component of unemployment taxes from 0.75% to 0.5% for 2022 and 0.8% to 0.7% for 2023. In 2023 employers with 10 or fewer employees will have a graduated social tax factor capped at the rate of 7%.
Employers should receive a 2022 tax rate notice by the end of March 2022. Just In time for filing for the first quarter of 2022. Paylocity will obtain the updated rates from the Washington Employment Security Division and make any necessary adjustments to the amounts due April 30, 2022.
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.
- Paylocity News
- Human Resources