Nextep's 2021 Annual Report is here! See what we accomplished together this year.

Your Guide to 2022 Tax Updates

Man using laptop at desk

It’s important to know about upcoming changes to tax laws for businesses. Prepare your company’s budget with this cheat sheet!

2022 Tax Update Breakdown

Social Security wage base First $147,00 of wages in 2022
FICA – Social Security (OASDI) 6.2%, up to the wage base
FICA – Medicare
1.45% up to $200,000, then 2.35% (The additional 0.9% is assessed to the employee only)
401(k) maximum deferral $20,500
401(k) additional deferral for ages 50+ $6,500
HSA contribution limit $3,650 individual, $7,300 family
HSA additional contribution for ages 55+ $1,000
FSA contribution limit $2,850 FSA and LPFSA, $5,000 DCA
Federal minimum wage $7.25, use state wage if higher
Mileage rate – business use $0.58.5 per mile
SUTA wage base – Colorado $17,000
SUTA wage base – Illinois $12,960
SUTA wage base – Minnesota Final 2022 update pending
SUTA wage base – Oklahoma $24,800
SUTA wage base – Tennessee Final 2022 update pending
SUTA wage base – Texas $9,000
SUTA wage base – all other states APA state-by-state guide
FUTA wage base First $7,000 of wages in 2022
FUTA tax rate 0.60% net, up to the wage base (6% rate, minus credit of up to 5.4%)

Consult with your financial advisor to find out what these changes will mean for you and your company. If you have additional questions, contact us online or call us at 888-811-5150.

Also on Nextep

We all know the importance of regular physicals and check-ups, but when was the last time you checked in on your mental health? May is Mental Health Awareness month, serving as a good reminder of how crucial a healthy mind is in the overall map of our wellbeing. This list and infographic can get you […]
Read more
If you’ve made it to this blog on leadership training, chances are you’ve spent some time with us the last couple of months as we dove into turning The Great Resignation into The Great Retention.  So far, we’ve covered flexibility, DEI, employee growth, pay, employee engagement, and benefits. While each of these is important, when […]
Read more
It’s no surprise benefits are one of the top reasons for employees staying with a company or going elsewhere. The Society for Human Resource Management (SHRM) study shows that 36% of employees leave for better benefits. Employee retention can be daunting, but we’re here to break it down! Therefore, we’re talking today about benefits. We’ll look […]
Read more
Employee engagement is a crucial piece of the recruiting and retaining top talent puzzle. When it comes to employee engagement, few people in Nextep can speak more authoritatively on the subject than our very own Director of Happiness, Tracey Hixon. To help you get started, Tracey answers some questions about how to retain employees by […]
Read more
In our employee retention series, we’ve talked about flexibility, employee growth, and diversity, equity, and inclusion (DEI). Now, let’s look at another topic that has a massive impact on attracting and retaining top talent: pay! The Great Resignation and the impacts of an ongoing pandemic have long-lasting effects. As a result, employees are evaluating their […]
Read more
Now is the time for employers to carefully review any arbitration or employment agreements they have in place. On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (HR 4445).  In cases of sexual assault or harassment in the workplace, many employers ask employees to sign arbitration […]
Read more
How often do you get the chance to expand beyond your current retention or recruiting strategies? It’s common for managers to get stuck in the daily work routine and overlook the growth opportunities their employees want. That neglect may mean a greater chance of talented employees leaving in the short run. Around 48% of employees […]
Read more
When employees can’t bring their whole self to work, they leave. Creating a diverse, equitable, and inclusive (DEI) workplace is imperative to increasing employee engagement and retention. Also vital: talking to your employees about it “Black and Hispanic workers are more likely than white workers to say they’re actively looking for new employment opportunities,” according […]
Read more
The Great Resignation: a term most leaders are probably tired of hearing but can’t ignore. So, instead, let’s talk about The Great Retention! We know tackling retention can be a daunting task, which is why we’re here to help you break it down and take it one step at a time.  The Great Resignation Retention […]
Read more
Finding a PEO can be a daunting task. You should feel confident in your partnership with Nextep or any PEO for that matter. To ensure you do, we’ve put together a short checklist of questions to ask in your meetings with PEOs.  1. What accreditations and certifications do you hold?  A few credentials you’ll want […]
Read more
Along with the new year comes new minimum wages for several states on January 1, 2022, that employers should be aware of. As a reminder, when state law differs from federal law, employers must use the wage that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 […]
Read more
In today’s competitive job market, it’s more important than ever to prioritize becoming a great place to work. Today’s workforce is searching for employers that value purpose, flexibility, and inclusivity. If you’re looking to recruit and retain top talent but don’t know where to start, here are three ways you can become an employer of […]
Read more

Download Our App