Federal

Fast Wage and Tax Facts

For the most current information and additional states, visit us at: www.ADP.com/Fast

Federal Tax Facts

Minimum Wage

Effective 7/24/2009

  • Minimum Wage
    $7.25
  • Minimum Cash Wage (Tipped Employee)
    $2.13
  • Maximum Tip Credit
    $5.12
  • Youth Minimum Wage
    $4.25

FICA (Medicare)

  • Maximum Taxable Earnings
    No Limit
  • Employee / Employer Tax Rate (Unchanged from 2019)
    1.45%
  • Additional Medicare Tax Withholding on Wages > $200,000(No Employer Match)
    0.90%

FICA (Social Security)

  • Maximum Taxable Earnings (Increased from $142,800 in 2021)
    $147,000
  • Employee / Employer Tax Rate(Unchanged from 2021)
    6.20%

FUTA (Employer-Paid)

  • Maximum Taxable Earnings
    $7,000
  • Percent of Taxable Wages
    6.00%
  • Maximum Credit
    5.40%
  • Normal Net Tax
    0.60%

Supplemental Wage / Bonus Rates

  • Flat Rate Withholding Method (Unchanged from 2021)
    22%
  • Pay over $1 Million (Unchanged from 2021)
    37%

Health Savings Accounts

  • Self-Only Contribution Limit (Employee / Employer)(Increased from $3,600 in 2021)
    $3,650
  • Family Contribution Limit (Employee / Employer)(Increased from $7,200 in 2021)
    $7,300
  • Catch-up Contribution Limit (Employee / Employer)(Unchanged from 2021)
    $1,000

Pension Plans

  • Contribution Limit - 401(k) & 403(b) plans(Increased from $19,500 in 2021)
    $20,500
  • Catch-up Contribution Limit - 401(k) & 403(b) plans (age 50 or older) (Unchanged from 2021)
    $6,500

Arizona State Tax Facts

Arizona Minimum Wage

Effective 1/1/2022

  • Minimum Wage
    $12.80
  • Minimum Cash Wage (Tipped Employee)
    $9.80
  • Maximum Tip Credit
    $3.00

Arizona State Income Tax

  • Wage Withholding
    % of AZ Gross Taxable Wages
  • Supplemental Wage / Bonus Rate
    No Provision

Arizona Unemployment Insurance

  • Maximum 2022 Taxable Earnings (Unchanged from 2021)
    $7,000
  • Employee 2022 Deduction
    None
  • Employer 2022 Tax Rates
    0.08 - 20.93%
  • Standard 2022 New Employer Rate
    2.00%
  • Voluntary Contribution Permitted
    Yes

Local Income Taxes Imposed:  No

FAST WAGE AND TAX FACTS is distributed with the understanding that the publisher is not rendering legal, accounting, tax or other professional services. If legal advice or other assistance is required, an attorney, CPA or tax adviser should be consulted. Minimum wage rates may vary by industry and may be superseded by Federal minimum wage rules. Contact the proper agency to verify.

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