--- title: Payroll Tax Rates and Contribution Limits for 2022 description: FocusPay Solutions provides business owners with the federal payroll tax rates for 2022. image: https://info.machen.cpa/hubfs/Payroll%20taxes-1317447263-1.jpeg --- [Family of Services](http://machenmcchesney.com/about-us/family-of-companies/)  |  [CPA & Business Advisory](http://machenmcchesney.com)  |  [Payroll, HR & Benefits](http://focuspaysolutions.com/)  |  [Wealth Management](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) Auburn-Opelika (334) 887-7022 | Montgomery (334) 244-8900 [![mm-re-cobrand-fd-blues](https://info.machen.cpa/hs-fs/hubfs/mm-re-cobrand-fd-blues.png?width=279&height=100&name=mm-re-cobrand-fd-blues.png)](http://machenmcchesney.com) Search this site on Google Search Google Search this site on Google Search Google - [Client Portal](https://machenmcchesney.sharefile.com/Authentication/Login) - [1040 Electronic Organizer](https://www.my1040data.com/account/login/HT7902990) - 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Below are the federal payroll tax rates and benefits contribution limits for 2022. **Social Security tax** In 2022, the Social Security tax rate is **6.2%** for employers and employees, unchanged from 2021. The Social Security wage base is **$147,000** for employers and employees, increasing from $142,800 in 2021. Self-employed people must pay 12.4% on the first $147,000. **Medicare tax** In 2022, the Medicare tax rate for employers and employees is **1.45%** of all wages, unchanged from 2021. Self-employed people must pay 2.9% on all net earnings. **Additional Medicare tax** In 2022, the additional Medicare tax remains unchanged at **0.9%**. This tax applies to wages and self-employment income over [certain thresholds](https://www.irs.gov/businesses/small-businesses-self-employed/questions-and-answers-for-the-additional-medicare-tax) ($200,000 for single filers and $250,000 for joint filers). **401(k) limits** In 2022, the maximum contributions to traditional and safe harbor plans are as follows: - Employee (age 49 or younger) = **$20,500**, up from $19,500 in 2021. - Employee catch-up (age 50 or older) = **$6,500**, unchanged from 2021. - Employee and employer (age 49 or younger) = **$61,000**, up from $58,000 in 2021. - Employee and employer (age 50 or older) = **$67,500**, up from $64,500 in 2021. Employees can contribute up to **$14,000** to a SIMPLE 401(k) plan, up from $13,500 in 2021. **HSA and HDHP limits** In 2022, the maximum contributions to a health savings account are as follows: - Employer and employee = **$3,650 (self only), $7,300 (family)**. - Catch-up amount (age 55 or older) = **$1,000**. In 2022, the limits for a high-deductible health plan are as follows: - Minimum deductibles = **$1,400 (self only), $2,800 (family)**. - Maximum out-of-pocket amounts = **$7,050 (self only), $14,100 (family)**. **FSA limits** In 2022, employees can contribute: - Up to **$2,850** to a health flexible spending account, increasing from $2,750 in 2021. - Up to **$5,000** to a dependent care FSA if filing single or jointly, and up to **$2,500** if married but filing separately. The American Rescue Plan temporarily raised the dependent care FSA limits in 2021 to $10,500 and $5,250, respectively. These increases do not apply in 2022. **QSEHRA limits** In 2022, employers with a qualified small employer health reimbursement arrangement can reimburse employees for health care expenses as follows: - **$5,450 (self only)**, up from $5,300 in 2021. - **$11,050 (family)**, up from $10,700 in 2021. **Commuter benefits limit** In 2022, employees can contribute up to **$280 per month** for qualified commuter benefits (e.g., mass transit and parking), up from $270 per month in 2021. This limit includes any employer contributions. **Adoption assistance exclusion limit** In 2022, up to **$14,890** in employer-sponsored adoption assistance may be excluded from an employee's gross wages, increasing from $14,440 in 2021. Remember, these are all federal rates and limits. Be sure to check with the necessary agencies for state and local payroll rates. **For additional information on [employee benefits administration and management](https://focuspaysolutions.com/services/benefits/?__hstc=167141729.8d06af314457e654623b920bf5695b73.1643811847042.1644856367558.1644869212367.24&__hssc=167141729.2.1644869212367&__hsfp=2341104755),** **please contact Amber Malik (334) 321-4729 or by leaving us a message below.**    copyright 2022 Topics: [Payroll, HR & Benefits](https://info.machen.cpa/blog/topic/payroll-hr-benefits) Search this site on Google Search Google ### Recent Posts ### Subscribe to Blog ### Posts by Category - [Business Tax (356)](https://info.machen.cpa/blog/topic/business-tax) - [Business Advisory (239)](https://info.machen.cpa/blog/topic/business-advisory) - [Payroll, HR & Benefits (124)](https://info.machen.cpa/blog/topic/payroll-hr-benefits) - [Audit & Assurance (113)](https://info.machen.cpa/blog/topic/audit-assurance) - [Accounting & Outsourcing (81)](https://info.machen.cpa/blog/topic/accounting-outsourcing) - [Individual Tax (75)](https://info.machen.cpa/blog/topic/individual-tax) - [Tax Planning (33)](https://info.machen.cpa/blog/topic/tax-planning) - [Tax Updates (25)](https://info.machen.cpa/blog/topic/tax-updates) - [Retirement & Wealth Management Planning (18)](https://info.machen.cpa/blog/topic/retirement-wealth-management-planning) - [Taxation (15)](https://info.machen.cpa/blog/topic/taxation) - [Alerts (13)](https://info.machen.cpa/blog/topic/alerts) - [Business Valuation (11)](https://info.machen.cpa/blog/topic/business-valuation) - [News & Events (11)](https://info.machen.cpa/blog/topic/news-events) - [Tax News (11)](https://info.machen.cpa/blog/topic/tax-news) - [Individual Tax Planning (10)](https://info.machen.cpa/blog/topic/individual-tax-planning) - [Not For Profit (10)](https://info.machen.cpa/blog/topic/not-for-profit) - [Retirement Planning (9)](https://info.machen.cpa/blog/topic/retirement-planning) - [Estate Planning (8)](https://info.machen.cpa/blog/topic/estate-planning) - [Manufacturing Industry Insights (7)](https://info.machen.cpa/blog/topic/manufacturing-industry-insights) - [Individuals (1)](https://info.machen.cpa/blog/topic/individuals) - [Insider (1)](https://info.machen.cpa/blog/topic/insider) - [Professional Standard News (1)](https://info.machen.cpa/blog/topic/professional-standard-news) see all [![Returning\_Value](https://info.machen.cpa/hs-fs/file-2504250850-jpg/Machen-Blog-Image/Returning_Value.jpg)](http://machenmcchesney.com/about-us/mission-and-values/) - [![AICPA](https://machenmcchesney.com/img/logos/aicpa.jpg)](https://www.aicpa-cima.com/) - [![NACVA](https://machenmcchesney.com/img/logos/nacva.jpg)](http://www.nacva.com/) - ![2026 INSIDE Public Accounting Top 400](https://machenmcchesney.com/img/2026-ipa-top-400.jpg) - ![2026 Best of Auburn-Opelika](https://machenmcchesney.com/img/2026-best-of-auburn-opelika.jpg) - [![2025 Best of OA](https://machenmcchesney.com/img/2025-best-of-oa.jpg)](https://oanow.com/exclusive/readerschoice/ballot-2025/) - ![2026 Best of OA Winner](https://machenmcchesney.com/img/2026-best-of-oa-winner.jpg) - [![2025 Accounting Today Regional Leaders](https://machenmcchesney.com/img/2025-accounting-today-regional-leaders.jpg)](https://www.accountingtoday.com/) - [![ClearlyRated Best of Accounting](https://machenmcchesney.com/img/2024-best-of-accounting.jpg)](https://www.clearlyrated.com/accounting) - [![ClearlyRated Best of Accounting Employee](https://machenmcchesney.com/img/2024-best-of-accounting-employee.jpg)](https://www.clearlyrated.com/accounting) 1820 East University Drive, Auburn, AL 36830 | Tel: (334) 887-7022 | Fax: (334) 887-7221 1761 Taliaferro Trail, Montgomery, AL 36117 | Tel: (334) 244-8900 | Fax: (334) 364-0927 † This is not a CPA firm. \* Assurance, attest, and audit services provided by Frazier & Deeter, LLC. “Frazier & Deeter” is the brand name under which Frazier & Deeter, LLC\* and Frazier & Deeter Advisory, LLC† and its subsidiary entities provide professional services. 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