Federal and State Payroll Updates - 2022

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A number of states and the District of Columbia have payroll-related changes that will take effect in the new year. These changes include minimum wage changes, updated state unemployment wage bases, and new paid sick leave laws. A current listing of enacted leave laws can also be found by clicking here.

Alabama

Updated December 15, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $8,000.00

Alaska

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $10.34 $10.34
Minimum Tipped Wage Prohibited Prohibited
Tip Credit Prohibited Prohibited

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $43,600.00 TBA

Arizona

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

Location 2021 2022
Minimum Wage $12.15 $12.80
Flagstaff $15.00 $15.50
Minimum Tipped Wage $9.15 $9.80
Flagstaff $12.00 $13.00
Tip Credit $3.00 $3.00
Flagstaff $3.00 $3.00

Unemployment Wage Base 2022: $7,000.00

Arkansas

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2020 2021
Minimum Wage $11.00 TBA
Minimum Tipped Wage $2.63 TBA
Tip Credit $8.37 TBA

 

Unemployment Wage Base 2022: $10,000

California

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

Employer Size 2021 2022
Minimum Wage 25 or Less Employees $13.00 $12.00
26 or More Employees $14.00 $15.00
Minimum Tipped Wage 25 or Less Employees Prohibited Prohibited
26 or More Employees Prohibited Prohibited

To learn more about CA state, city, and county minimum wages, click here.

 

Unemployment Wage Base 2022: $7,000.00

Colorado

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $12.32 $12.56
Minimum Tipped Wage $9.30 $9.54
Tip Credit $3.02 $3.02

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $13,600.00 $17,000.00

Connecticut

Updated December 15, 2021

 

Minimum Wage Changes – Effective 7/1/2022

2021 2022
Minimum Wage $13.00 $14.00
Minimum Tipped Wage Bartenders $8.23 $8.23
Other Tipped Employees $6.38 $6.38
Tip Credit Bartenders $4.77 $5.77
Other Tipped Employees $6.62 $7.62

 

Unemployment Wage Base 2022: $15,000.00

District of Columbia

Updated June 29, 2021

 

Minimum Wage Changes – Effective 7/1/2021

2020 2021
Minimum Wage $15.00 $15.20
Minimum Tipped Wage $5.00 $5.05
Tip Credit $10.00 $10.15

Unemployment Wage Base 2021: $9,000.00

Delaware

Updated December 15, 2021

 

Minimum Wage Changes – Effective 10/1/2022

2021 2022
Minimum Wage $10.25 $10.50
Minimum Tipped Wage $2.23 $2.23
Tip Credit $8.02 $8.27

 

Unemployment Wage Base 2022: $16,500.00

Florida

Updated December 15, 2021

 

Minimum Wage Changes – Effective 9/30/2022

2021/2022 2022/2023
Minimum Wage $10.oo $11.00*
Minimum Tipped Wage $6.98 $7.98
Tip Credit $3.02 $3.02

*Amendment 2 will incrementally increase Florida’s state minimum wage starting in 2021 through 2026. The state minimum wage will increase at a rate of $1 each year, reaching $15.00 by 2026.

 

Unemployment Wage Base: $7,000.00

Georgia

Updated December 15, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $9,500.00

Hawaii

Updated December 16, 2021

 

Minimum Wage Changes – Effective 1/1/2022

 2021  2022
Minimum Wage $10.10 $10.10
Minimum Tipped Wage $9.35 $9.35
Tip Credit $0.75* $0.75*

* Tip Credit in Hawaii is permissible if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $47,400.00 TBA

Idaho

Updated December 15, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $3.35
Tip Credit $3.90

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $43,000.00 TBA

Illinois

Updated December 15, 2021

 

Minimum Wage Changes – Effective 1/1/2022

Location 2021 2022
Minimum Wage $11.00 $12.00
Chicago (4-20 employees) $14.00* $14.50*
Chicago (21+ employees) $14.00 $15.00*
Cook County $13.00 $13.00
Minimum Tipped Wage $6.60 $6.60
Tip Credit $4.40 $4.40

 

*Effective 7/1/2022

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $12,960.00 TBA

Indiana

Updated December 16, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base 2022: $9,500.00

Iowa

Updated December 16, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $4.35
Tip Credit $2.90

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $32,400.00 $34,800.00

Kansas

Updated December 16, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base 2022: $14,000.00

Kentucky

Updated December 15, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $10,800.00 TBA

Louisiana

Updated December 15, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $7,700.00

Maine

Updated December 16, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $12.15 $12.75
Minimum Tipped Wage $6.08 $6.38
Tip Credit $6.08 $6.38

Unemployment Wage Base 2022: $12,000.00

Maryland

Updated December 15, 2021

 

Minimum Wage Changes- Effective 1/1/2022

Location 2021 2022
Minimum Wage  (Small Employer – 14 or fewer) $11.60 $12.20
Minimum Wage (Large Employer – 15 or more) $11.75 $12.50
Montgomery County (Small Employer – 10 or fewer) $13.50 $14.00*
Montgomery County (Mid-Sized Employer – 11-50 and certain nonprofit and service providers) $14.00 $14.50*
Montgomery County (Large Employer – 51 or more) $15.00 TBA*
Prince George’s County $11.75 TBA
Minimum Tipped Wage $3.63 $3.63
Tip Credit $8.12 $8.87

*Effective 7/1/2022

 

Unemployment Wage Base 2022: $8,500.00

Massachusetts

Updated December 16, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $13.50 $14.25
Minimum Tipped Wage $5.55 $6.15
Tip Credit $7.95 $8.10

Unemployment Wage Base 2022: $15,000.00

Michigan

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2021
Minimum Wage $9.65 $9.87
Minimum Tipped Wage $3.67 $3.75
Tip Credit $5.98 $6.12

Unemployment Wage Base 2022: TBA

Minnesota

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

Employer Size 2021 2022
State of Minnesota Less than $500,000 in Gross Sales $8.21 $8.42
$500,000 or more in Gross Sales $10.08 $10.33
City of Minneapolis (Small Employer – 100 or fewer) $12.50 $13.50*
(Large Employer – 101 or more) $14.25 $15.00*
(Small Employer – 5 or fewer) $10.00 $10.75*
City of St. Paul (Small Employer – 6 to 100 employees) $11.00 $12.00*
(Large Employer – 101 or more) $12.50 $13.50*

*Effective 7/1/2022

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $35,000.00 TBA

 

Mississippi

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $14,000.00

Missouri

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $10.30 $11.15
Minimum Tipped Wage $5.15 $5.15
Tip Credit $4.725 $5,15

 

Unemployment Wage Base Changes – Effective 1/1/2022

2020 2021
Unemployment Wage Base $11,000.00 TBA

Montana

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $8.75 $9.20
Minimum Tipped Wage Prohibited Prohibited
Tip Credit Prohibited Prohibited

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $35,300.00 $38,100.00

Nebraska

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $9.00
Minimum Tipped Wage $2.13
Tip Credit $6.87

Unemployment Wage Base 2022: $9,000.00

Nevada

Updated December 17, 2021

 

Minimum Wage Changes- Effective 7/1/2022

2020/2021 2021/2022
Minimum Wage $9.75 if no qualifying health benefits offered, $8.75 with qualifying health benefits $10.50 if no qualifying health benefits offered, $9.50 with qualifying health benefits
Minimum Tipped Wage Prohibited Prohibited
Tip Credit Prohibited Prohibited

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $33,400.00 $36,600.00

 

New Hampshire

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $3.26
Tip Credit $3.99

Unemployment Wage Base 2022: $14,000.00

New Jersey

Updated  December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $12.00 $13.00
Minimum Tipped Wage $4.13 $5.13
Tip Credit $7.87 $7.87

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $36,200.00 TBA

 

New Mexico

Updated December 17, 2021

 

Minimum Wage changes – Effective 1/1/2022

$2.55

Location 2021 2022
Minimum Wage  State of New Mexico $10.50 $11.50
Albuquerque (without health benefits or childcare) $10.50 TBA
Albuquerque (with health benefits or childcare) $9.50 TBA
Bernalillo County $10.50 TBA
Las Cruces $10.50 $11.50
Santa Fe County (effective 3/1/2021) $12.32 $12.10
TBA
Minimum Tipped Wage State of New Mexico $2.55 $2.80
Albuquerque $6.30 TBA
Las Cruces $4.20 $4.60
Santa Fe County (effective 3/1/2021) $3.69 TBA
Tip Credit State of New Mexico $7.95 $8.70

 

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $27,000.00 TBA

New York

Updated December 17, 2021

 

Minimum Wage Changes – Effective 12/31/2021 (Through 12/30/2022)

Location 2021 2022
State of New York $12.50 $13.20
NYC Large Employer – 11 or More Employees $15.00 $15.00
NYC Small Employer – 10 or Less Employees $15.00 $15.00
Long Island & Westchester $14.00 $15.00
Fast Food Employees $14.50 $15.00
NYC Fast Food Employees $15.00 $15.00

Click Here for the Minimum Wage information for Tipped Employees, Hospitality Workers, and Farm Workers

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $11,800.00 $12,000.00

North Carolina

Updated December 17, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base Changes – Effective 1/1/2021

2021 2022
Unemployment Wage Base $26,000.00 TBA

North Dakota

Updated December 17, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $4.86
Tip Credit $2.39

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $38,500.00 TBA

Ohio

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $8.80 $9.30
Minimum Tipped Wage $4.40 $4.65
Tip Credit $4.40 $4.65

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $9,000.00 $9,000.00

Oklahoma

Updated December 17, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $24,000.00 $24,800.00

Oregon

Updated December 17, 2021

 

Minimum Wage Changes – Effective 7/1/2022

Location H2 2021/H1 2022 H2 2022/H1 2023
Minimum Wage $12.75 $13.50
Portland Metro $14.00 $14.75
Non-urban Counties $12.00 $12.50
Minimum Tipped Wage Prohibited Prohibited

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $43,800.00 TBA

Pennsylvania

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.83
Tip Credit $4.42

Unemployment Wage Base 2022: $10,000.00

Rhode Island

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

 2021  2022
Minimum Wage $11.50  $12.25
Minimum Tipped Wage $3.89 $4.64
Tip Credit $7.61 $7.61

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $24,600.00 TBA

South Carolina

Updated December 17, 2021

 

Hooray! No state changes for 2021. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $14,000.00

South Dakota

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $9.45 $9.95
Minimum Tipped Wage $4.73 $4.80
Tip Credit $4.65 $4.73

Unemployment Wage Base 2022: $15,000.00

Tennessee

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit N/A

Unemployment Wage Base 2022: $7,000.00

Texas

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base 2022: $9,000.00

Utah

Updated December 17, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $38,900.00 TBA

Vermont

Updated December 27, 2021

 

Minimum Wage Changes – Effective 1/1/2022

2021 2022
Minimum Wage $11.75 $12.55
Minimum Tipped Wage $5.88 $6.28
Tip Credit $5.87 $6.27

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $14,100.00 $15,500.00

Virginia

Updated December 17, 2021

 

Minimum Wage Changes – Effective 5/1/2022

 

2021 2022
Minimum Wage $9.50 $11.00
Minimum Tipped Wage $2.13 $2.13
Tip Credit $7.37 $8.87

Unemployment Wage Base 2022: $8,000.00

Washington

Updated December 17, 2021

 

Minimum Wage Changes – Effective 1/1/2022

Location 2021 2022
Minimum Wage $13.69 $14.49
Seattle – Schedule 1 Employers (501 or more employees in US) $16.69 $17.27
Seattle – Schedule 1 Employers (of a franchise businesses with 500 or more employees nationwide) $16.69 $17.27
Seattle – Schedule 2 Employers (500 or fewer) without Medical Benefits $16.69 $17.27
Seattle – Schedule 2 Employers (500 or fewer) with Medical Benefits $15.00 $15.75
Tacoma $13.69 $14.49
Minimum Tipped Wage Prohibited Prohibited Prohibited
Tip Credit Prohibited Prohibited Prohibited

 

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $56,500.00 $62,500.00

West Virginia

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $8.75
Minimum Tipped Wage $2.62
Tip Credit $6.13

Unemployment Wage Base 2022: $12,000.00

Wisconsin

Updated December 17, 2021

 

Hooray! No state changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.33
Tip Credit $4.92

Unemployment Wage Base 2022: $14,000.00

Wyoming

Updated December 17, 2021

 

Hooray! No minimum wage changes for 2022. Here are the current numbers in case you were wondering:

Minimum Wage $7.25
Minimum Tipped Wage $2.13
Tip Credit $5.12

Unemployment Wage Base Changes – Effective 1/1/2022

2021 2022
Unemployment Wage Base $27,300.00 TBA

2022 Federal Changes

Updated December 15, 2022

 

Social Security Wage Base Changes – Effective 1/1/2022

2021 2022
Social Security Wage Base $142,800.00 $147,000.00

 

FSA Limit Changes – Effective 1/1/2022

2021 2022
Health FSA Limit $2,750.00 $2,850.00
Dependent Care Limit $10,500.00 $5,000.00*

*The temporary, $10,000 increase was part of the American Rescue Plan Act of 2021, and was not extended into 2022.

 

HSA Limit Changes – Effective 1/1/2022

2021 2022
Individual HSA Limit $3,600.00 $3,650.00
Family HSA Limit $7,200.00 $7,300.00
HSA Catch-up Contribution (age 55+) $1,000.00 $1,000.00
Individual HDHP Out-Of-Pocket Max $7,000.00 $7,050.00
Family HDHP Out-Of-Pocket Max $7,000.00 $7,100.00

 

Mileage Reimbursement Changes – Effective 1/1/2022

2021 2022
Business Miles Driven $0.56  TBA
Moving Mileage Reimbursement No longer allowed No longer allowed

 

Transportation Benefits – Effective 1/1/2022

2021 2022
Parking Allowance – Per Month $270.00 $280.00
Transit Allowance – Per Month $270.00 $280.00

 

Qualified Small Employer HRA (QSEHRA) – Effective 1/1/2022

2021 2022
Single – Monthly $441.67 $454.16
Family – Monthly $891.67 $920.83
Single – Annual $5,300.00 $5,450.00
Family – Annual $10,700.00 $11,050.00

 

401(k), 403(b), 457 Plan Limit Changes – Effective 1/1/2022

2021 2022
Maximum employee elective deferral $19,500.00 $20,500.00
Employee catch-up contribution (if age 50 or older by year-end) $6,500.00 $6,500.00
Employee compensation limit for calculating contributions $290,000.00 $305,000.00
*The $6,500 catch-up contribution limit for participants age 50 or older applies from the start of the year to those turning 50 at any time during the year.

 

IRA Contribution Limits – Effective 1/1/2022

2021 2022
Traditional IRA $6,000.00 $6,000.00
Roth IRA $6,000.00 $6,000.00
Employee catch-up contribution (if age 50 or older by year-end) $1,000.00 $1,000.00
*The $1,000 catch-up contribution limit for participants age 50 or older applies from the start of the year to those turning 50 at any time during the year.

Check out our guide to the payroll process for more information, or try out our employer payroll calculator to see how these taxes are applied in practice.

 

Jacob Thomas is the Marketing and Technical Writer for OnPay. He has more than 10 years experience in writing about and teaching technology. He lives and works in his hometown of Atlanta.

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