Payroll Updates for 2022
January 05, 2022 |
If you are a business owner, below are important updates and information that could affect your business in 2022. As your trusted advisor, Simon Lever is here to help you navigate these changes to payroll. If you have questions as you read through this information, please contact your Simon Lever advisor.
EMPLOYEE & EMPLOYER WITHHOLDINGS & LIMITATIONS
Rate for both the employee and employer stays the same at 6.2%. The wage base increases from $142,800 to $147,000.
Rate for both the employee and employer stays the same at 1.45%; also, the withholding tax rate for high-earning employees is still an additional 0.9% for wages paid to an employee over $200,000. This makes the effective Medicare tax rate for high-earning employees 2.35% for wages over $200,000. This does NOT affect the employer rate.
401(k), 403(b) & 457 plans
Limitation for elective deferrals (contribution) for employees who participate increases from $19,500 to $20,500, and the catch-up for participants aged 50 and over remains the same at $6,500.
Limitation for elective deferrals increases from $13,500 to $14,000, and catch-up for participants aged 50 and over remains at $3,000.
pa state unemployment wage base
Remains at $10,000 in 2022.
pa state unemployment employee
Remains at 0.0006 in 2022.
- 58.5¢ per mile for business miles driven in 2022.
- 18¢ per mile driven for medical or moving purposes in 2022.
- 14¢ per mile driven in service of charitable organizations in 2022.
hsa CONTRIBUTION LIMITS
Individuals increase to $3,650, family increases to $7,300. Additional catch-up of $1,000 allowed for those 55 and over.
hDHP minimum required deductibles
Limits will remain the same at $1,400 for individual and $2,800 for family coverage.
out-of-pocket maximum limits FOR HDHP
Limits will increase to $7,050 for individuals and $14,100 for family coverage.
Recipient copy due to employee, paper copy A due to Social Security Administration, electronic copy A due to Social Security Administration – ALL DUE January 31, 2022
Recipient copy due to subcontractor, paper filing due to IRS, electronic filing due to IRS – ALL DUE January 31, 2022