The California Employment Development Department has confirmed that unemployment tax rates are unchanged for 2022 on its website.
Effective January 1, 2022, unemployment tax rates will hold steady as compared to 2021 ranging from 1.50% to 6.20%. The new-employer tax rate will also remain stable at 3.40%. Employers with a positive reserve balance or those with a new employer tax rate will also be subject to the Employment Training Tax (ETT) of 0.10% for 2022, same as 2021.
California’s unemployment taxable wage base is to be $7,000 in 2022, unchanged from 2021.
While there will be an increase in the state disability insurance taxable wage base from $128,298 in 2021 to $145,600 in 2022, the tax rate associated with this program will decrease from 1.20% in 2021 to 1.10% in 2022. As a result, the maximum amount to withhold per employee in 2022 will be $1,601.60.
As always, we will continue to monitor this situation and provide updates as they become available. If there are any questions, please do not hesitate to contact us or visit our website for the latest news and updates.