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2021 Year-End Tax Alert
December 30, 2021
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 | 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) |
State Minimum Wage Rates Effective January 1, 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) |
Local Minimum Wage Rates Effective January 1, 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 |
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|
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.
