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Excess Wages - Introduction

Excess Wages - Introduction

The taxable wage base is the maximum amount of employee wages on which an employer must pay unemployment taxes in a year. It is the same for all employers in the state and does not change during a calendar year. Below is an example of taxable wage calculations based on the 2010 taxable wage base of $13,000.

If you file your reports online with USTAR, your excess wages will be calculated automatically.

Calculating Total, Excess, and Taxable Wages -- Quarter by Quarter
This example uses a fictitious company X, which has two employees, John Smith and Jane Doe. The employees' earnings in each quarter in the year are:

  1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
John Smith $4,000 $4,000 $5,000 $3,500 $16,500
Jane Doe $7,000 $7,000 $0 $4,000 $18,000

We will follow the company through the entire year, calculating the total, excess, and taxable wages for each quarter.

[ Forward to the First Quarter ]