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© 2021 American Payroll Institute, Inc. State Unemployment Insurance Taxable Wage Bases for 2022 State unemployment insurance (UI) taxes are determined by applying a certain percentage to the taxable wages paid by the employer. The Federal Unemployment Tax Act (FUTA) requires that each state’s taxable wage base must at least equal the FUTA wage base of $7,000 per employee. The states use varying formulas for determining their taxable wage base, with some tying it by law to the FUTA wage base and others using a percentage of the state’s average annual wage (see The Payroll Source®, §7.2-2). Following is a chart of state taxable wage bases for 2022 and 2021 to help you prepare your payroll operations for 2022 (this updates The Payroll Source®, §7.2-2). States that have changed their wage base for 2022 are in bold. The wage bases of the remaining states will be reported in future issues of PAYSTATE UPDATE as they become available. The remaining wage bases will also be posted on the APA website (select “Compliance” and then “State Unemployment Wage Bases” under “Overview”). State/Territory 2022 2021 State/Territory 2022 2021 Alabama $8,000 $8,000 Nebraska $9,0005 $9,0005 Alaska 43,600 Nevada 36,600 33,400 Arizona 7,0001 7,000 New Hampshire 14,000 14,000 Arkansas 10,000 New Jersey 36,200 California 7,000 7,000 New Mexico 28,700 27,000 Colorado 17,0002 13,600 New York 12,000 11,800 Connecticut 15,0003 15,000 North Carolina 26,000 Delaware 16,500 North Dakota 38,500 District of Columbia 9,000 9,000 Ohio 9,000 9,000 Florida 7,000 7,000 Oklahoma 24,800 24,000 Georgia 9,500 9,500 Oregon 43,800 Hawaii 48,100 Pennsylvania 10,000 10,000 Idaho 47,000 Puerto Rico 7,000 Illinois 12,960 Rhode Island 24,6006 Indiana 9,500 9,500 South Carolina 14,000 14,000 Iowa 34,800 32,400 South Dakota 15,000 15,000 Kansas 14,000 14,000 Tennessee 7,000 Kentucky 11,100 10,800 Texas 9,000 9,000 Louisiana 7,700 7,700 Utah 38,900 Maine 12,000 12,000 Vermont 14,100 Maryland 8,500 8,500 Virgin Islands 32,500 Massachusetts 15,000 15,000 Virginia 8,000 8,000 Michigan 9,5004 Washington 62,500 56,500 Minnesota 35,000 West Virginia 12,0007 12,000 Mississippi 14,000 14,000 Wisconsin 14,000 14,000 Missouri 11,000 Wyoming 27,300 Montana 38,100 35,300 1 Arizona – Wage base will increase to $8,000 in 2023 2 Colorado – Wage base will increase to: $20,400 in 2023 $23,800 in 2024 $27,200 in 2025 and $30,600 in 2026 3 Connecticut – Wage base will increase to $25,000 in 2024 4 Michigan – $9,500 for all employers in 2021 (in prior years, contributing employers had a UI taxable wage base of $9,000) 5 Nebraska – $24,000 for employers in highest UI tax rate group (category 20) 6 Rhode Island – $26,100 for employers in the highest UI tax rate group 7 West Virginia – Proposed legislation could decrease the wage base to $9,000 for 2022 October 18, 2021 Volume 23 Issue 20