The new year is upon us, which means with it comes new California payroll tax laws for 2022. Let’s take a closer look at what to expect in this new year of new tax laws.

2022 Interest Rates on Delinquent Payroll Taxes

The 2022 interest rates on delinquent payroll taxes have been released by the state Employment Development Department. The interest rates are as follows:

January 1, 2022, through June 30, 2022

The interest rate on delinquent payroll taxes will be 3% compounded daily (unchanged from 2021) from January 1, 2022, through June 30, 2022. 

Interest rates for delinquent payroll taxes refer to all overdue taxes, including: 

  • Personal Income Tax
  • State Disability Insurance
  • Employment Training Tax
  • Unemployment Insurance

This rate is subject to semiannual adjustment in January and June based on short-term federal rates. The interest cannot be canceled or waived according to California’s Unemployment Insurance Code. 

2022 Minimum Wage Rate

In 2022, California’s statewide minimum wage rate will rise. According to the California Department of Industrial Relations, the increases are as follows:

Large Employers (26+ Employees)

The minimum wage rate for large employers, with at least 26 employees, will become $15.00 per hour.

Small Employers (<26 Employees)

The minimum wage rate for large employers, with less than 26 employees, will become $14.00 per hour. By 2023, a law passed by the state of California in 2016 requires the state hourly minimum wage to increase for small employers up to $15.00.

Local Minimum Wage Rates

While it is required by state law that employers are paid the state minimum wage, there are several counties and cities within the state that have local minimum wage rates higher than the state rate.

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