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 taxable wage base of $13,000.
If you file your reports online with UInteract, 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.