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Payroll Tax Rates & Changes

Find out the latest on payroll tax rates and changes and how they may affect your business so you can maintain compliance.
Following is a list of scheduled limitation adjustments and tax provision changes effective 2022. As additional changes are released, we will update this information. It is important to be familiar with changes in payroll taxes each year to accurately process payroll.

2022 Limitation Adjustments

Updated 03/16/22
COMPENSATION THRESHOLDS
IRA THRESHOLDS
  • The deduction for taxpayers making contributions to a traditional IRA is phased out for single individuals and heads of household who are active participants in a qualified plan (or another specified retirement plan) and have adjusted gross incomes between $68,000 and $78,000. For married couples filing jointly, if the spouse who makes the IRA contribution is an active participant, the income phase-out range is between $109,000 and $129,000. For an IRA contributor who is not an active participant and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $204,000 and $214,000. For a married individual filing a separate return who is an active participant, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
  • The adjusted gross income limitation for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is $204,000. The adjusted gross income limitation for all other taxpayers (other than married taxpayers filing separate returns) is $129,000. The applicable dollar amount for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0.
  • The adjusted gross income phase-out range for taxpayers making contributions to a Roth IRA is $124,000 to $214,000 for married couples filing jointly. For singles and heads of household, the income phase-out range is $129,000 to $144,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
RETIREMENT THRESHOLDS
  • The limitation concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan increased from $50,000 to $55,000.
  • The definition of a control employee for fringe-benefit valuation purposes increased from $115,000 to $120,000. The compensation amount increased to $245,000.
  • The dollar limitation on premiums paid for a qualifying longevity annuity contract increased to $145,000.
  • The adjusted gross income limitation for determining the retirement savings contributions credit for married taxpayers filing a joint return is $41,000.
  • The adjusted gross income limitation for determining the retirement savings contributions credit for taxpayers filing as head of household is $30,750.
  • The adjusted gross income limitation for determining the retirement savings contributions credit for all other taxpayers is $20,500.
  • The limit on annual contributions to an individual retirement arrangement remains unchanged at $6,000.

2021 Tax Provisions

Updated 03/16/22

How APS Can Help

APS’ payroll tax compliance experts handle all of the paperwork and filings, keeping you in compliance:

The information on this page is subject to change at any time based on tax regulation updates. To stay current on payroll processing issues and payroll tax news. subscribe to the APS Blog.

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