Alabama (AL) – 2022

Alabama Effective 7/24/2009 Federal Effective 7/24/2009

Minimum WageAlabamaFederal
Minimum Wage$7.25*$7.25
Minimum Cash Wage (Tipped Employee)$2.13*
Maximum Tip Credit$5.12*
Youth Minimum Wage$4.25*
State Income TaxAlabamaFederal
Wage WithholdingTables
Supplemental Wage / Bonus Rate5.00%
Unemployment InsuranceAlabamaFederal
Maximum 2022 Taxable Earnings (Unchanged from 2021)$8,000
Employee 2022 DeductionNone
Employer 2022 Tax Rates (Includes 0.06% employment security assessment)0.65 – 6.8%
Standard 2022 New Employer Rate2.70%
Voluntary Contribution PermittedNo

Federal (FED) – 2022

Minimum WageFederal
Minimum Wage$7.25
Medicare Rate1.45%
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)2.35%
Maximum Taxable EarningsNo Limit
Maximum Taxable Earnings (Increased from $142,800 in 2021)$147,000
Employee / Employer Tax Rate (Unchanged from 2019)6.20%
Health Savings AccountsFederal
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2021)$1,000
Pension PlansFederal
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019)$6,500
Contribution Limit – 401(k) & 403(b) plans (Increased from $19,500 in 2021)$20,500

Alabama State Resources

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