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

Year-End Tax Prep As we begin to wrap up 2022, we want you prepared for tax season and a smooth transition into the new year. That’s why we’ve compiled the tax prep key details in one place.  W-2s You and your employees can opt-in to receive W-2s securely and electronically instead of receiving a mailed […]
Read more
We’re coming to that time of year when you need to know about paying year-end bonuses. With Nextep, we’ve got you covered. Here are the details: Timeline for bonuses All requests for 2022 bonuses should be made by Friday, December 23. Requests made after December 23 must be paid in the 2023 tax year.  Requests […]
Read more
How do you handle employee promotions? When promoting one of your star employees to a management or supervisory position, companies should take the time to train and help the manager adjust to their new role.  An employee’s relationship with their immediate supervisor is one of the top five factors in job satisfaction, so a new […]
Read more
It should be no surprise that your employees post on social media or even blog throughout the day ─ maybe even on company time or equipment. And while they may not post on the clock, it’s unlikely that after hours they think their social media or blog posts could have consequences at work. While employers […]
Read more
The holidays can raise confusing questions on how to pay your employees, especially since there are separate rules for nonexempt and exempt employees. Here is a quick reminder on how to pay both groups during holidays. Pay for Nonexempt Employees If your business is closed for the holiday(s), the Fair Labor Standards Act (FLSA) does […]
Read more
The Equal Employment Opportunity Commission (EEOC) recently released the “Know Your Rights” poster, which updates and replaces the previous “EEO is the Law” poster. Covered employers are required by federal law to prominently display the poster in their workplace.  DOWNLOAD POSTER What it covers The poster includes federal laws prohibiting job discrimination, as well as […]
Read more
Did you know that claims for unemployment benefits from former employees can increase your State Unemployment Tax Act (SUTA) tax rate? Managing the unemployment process can sometimes take excessive resources making it difficult for business owners to give unemployment claims the attention they require. Nextep manages this process for our PEO clients and can help […]
Read more
How to handle the SSN in the workplace The Social Security Administration has announced that an individual may now self-select their gender on their social security number (SSN) record. Previously, the sex marker would have to match medical records and other legal documentation. Now, a person can select the male or female sex designation of […]
Read more
Workplace violence among employees is a threat that all companies should be aware of and work to prevent. In 2020, workplace assaults resulted in 20,050 injuries and 392 fatalities, according to Injury Facts®. Background screening before hiring can help find warning signs and prevent employers from hiring a known threat. Sometimes, though, the employee has […]
Read more
When completing the I-9 to verify employment eligibility, you may notice that the form will expire on October 31, 2022. Usually, the government releases a new form to replace the old one. However, the Department of Homeland Security (DHS) and US Immigration and Customs Enforcement (ICE) has announced an extension to the existing form.  As […]
Read more
Should an employee clock out for a short break? What if they leave the office? Knowing the ins and outs of employee pay can be tricky, so today we’re tackling break times to help keep you in the know.  Generally, nonexempt employees do not clock out when taking short breaks of 20 minutes or less […]
Read more
Can I make my employee remove his nose piercing? Can I require dresses? What if my employee smells horrible?  These and other questions frequently arise when companies are developing effective dress codes. A thorough dress code that respects each employee’s judgment and comfort can be challenging for employers to come up with on the fly […]
Read more

Download Our App