WV Unemployment Wage Base Lowered to $9,000 for 2022

At a Glance

• West Virginia unemployment taxable wage base is lowered to $9,000 for 2022
• The agency sent a letter to all employers.

Introduction

The West Virginia Code, Section 21A-1A-28(d). enforces a decrease in wage base limit If the state's Unemployment Trust Fund Balance is at least $220 million dollars. As of February 15, 2022, the West Virginia's Unemployment Trust Fund Balance surpassed the $220 million dollars triggering the wage base limit to decrease to $9,000 from $12,000.

However, the state unemployment Insurance contributions rates continue to range from 1.5% to 8.5% and the negative balanced employer will see an additional 1.0% surtax with a total ranging from 6.5% to 8.5% (Including the surtax). In addition, the new employer rate for most employers will continue to be 2.7% and 8.5% for foreign contractors.

For more information on West Virginia's wage and payroll tax laws, check out our West Virginia Wage and Payroll Tax Facts page.

Next Steps

Paylocity will communicate with employers for the next steps to collect variances at the end of the quarter if needed.

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