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