The Social Security taxable wage base for 2022 will increase to $147,000 from $142,800, according to a recent announcement from the Social Security Administration (SSA). This is the maximum amount of earnings subject to the Social Security tax for 2022.
Remember, both an employer and an employee must pay Social Security and Medicare taxes. Employers must withhold and deposit the employee’s withheld taxes and pay a matching amount at the appropriate rates.
The Social Security withholding rate is unchanged for 2022 and remains at 6.2 percent, up to the maximum taxable amount. The Federal Insurance Contributions Act (FICA) tax rate — which is the combined total of the Social Security tax rate and the 1.45 percent Medicare tax rate — also remains unchanged at 7.65 percent.
Individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates above do not include the 0.9 percent.
There is no limit on the amount of wages subject to the Medicare tax.
Katie Culliton, Editor, CalChamber
Governor Gavin Newsom has finished signing new 2022 employment laws! CalChamber employment law experts summarize these new employment laws in more detail in the October 21 issue of our HRCalifornia Extra newsletter (subscribe to HRCalifornia Extra) and in our annual new laws whitepaper (coming in November).
Pre-order your California Labor Law posters now because mandatory updates are effective on January 1, 2022! CalChamber’s convenient 28″ x 46″ all-in-one poster contains the 18 state and federal employment notices every California employer must post — even if you only employ one person in California. Be sure to display a poster in each business location where employees can easily see it and read it.