*** 2022 FICA Maximum has changed from 2021 ***
Before running a payroll for a new calendar year (2022), the MTD, QTD and YTD (from 2021) on the employees’ records must be cleared out. Running the Clear YTD, QTD, MTD Emp/Recurring program does this. Go to:
-
Payroll (Module 1)
-
System Management Functions (Task 32)
- Clear YTD, QTD, MTD Emp/Recurring (Sub-task 3)
-
System Management Functions (Task 32)
Clearing these fields will not interfere with the running of W-2s for 2021 since the information for the W-2s come from the Payroll History. Note: If these fields are not cleared, the current year’s wages (2022 that print on the check stub will also include the wages from the prior year (2021).
-
Also note that the FICA wage Maximum for 2022 HAS changed:
- 2022 $147,000.00 [SSA.gov as of 1/18/2022]
- 2021 $142,800.00
- See below the change needed in field 5. Unless you have an employee who is going to exceed the old cap of $142,800.00 before the 2021 W2’s are printed, then this change can be made after your W2’s are printed.
- The FICA employee tax rate for social security is still 6.20%, as it was in 2021.
- The FICA employer tax rate for social security is still 6.20%, as it was in 2021.
FICA fields are found in:
-
Payroll (Module 1)
-
System Management Functions (Task 32)
-
Update P/R Execution Parameters (Sub-task 4)
- Field 5: FICA Maximum: 147,000.00
- Field 6: FICA employee %: 6.20
- Field 7: FICA employer %: 6.20
-
Update P/R Execution Parameters (Sub-task 4)
-
System Management Functions (Task 32)
ADDITIONAL NOTE: Field 5: FICA Maximum needs to be the 2021 amount of $142,800.00 when the 2021 W2’s are printed and when the payroll reports are printed for the 2021 4th quarter.
Verify the 2022 FUTA % & maximum: (Both unchanged from 2021)
-
Payroll (Module 1)
-
System Management Functions (Task 32)
-
Update P/R Execution Parameters (Sub-task 4)
- Field 20 Fed unemp max: 7,000.00
- Field 21 Fed unemp pct: 0.60 (which is net of 6% - 5.4% max credit. You must verify this is applicable to your particular state & situation)
-
Update P/R Execution Parameters (Sub-task 4)
-
System Management Functions (Task 32)
STATE:
- If your state has an unemployment maximum and an unemployment % you may need to update field 22 & 23. Verify with your state website or your accountant.