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Taxable Wage Base Example - Page 1 of 5
Introduction · 1st Quarter · 2nd Quarter · 3rd Quarter · 4th Quarter · Yearly Summary
1st Quarter:
Calculate each person's excess wages.
- John Smith
- John Smith earned $4,000 in this quarter. Because this is the first quarter, his total wages for the year also equal $4,000. John Smith has no wages over the taxable wage base ($12,000), so none of his wages are excess wages.
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| | Total Wages | Excess Wages |
| Quarter Wages | for the year | for the Quarter |
| $4,000 | $4,000 | $0 |
- Jane Doe
- Jane Doe earned $7,000 in this quarter. Like John Smith, this is also her total wages for the year. Jane Doe has no wages over the taxable wage base ($12,000), so none of her wages are excess wages.
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| | Total Wages | Excess Wages |
| Quarter Wages | for the year | for the Quarter |
| $7,000 | $7,000 | $0 |
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Calculate the employer's total wages and total excess wages.
Now that we have the total and excess wages for each worker, we can calculate the employer's total wages and total excess wages for the quarter.
| | Wages this Quarter | Excess Wages |
| John Smith | $4,000 | $0 |
| Jane Doe | $7,000 | $0 |
| Total | $11,000 | $0 |
These totals go in item 4, "Total Wages Paid" and 5, "Wages Paid in Excess of $12,000" on the Quarterly Contribution and Wage Report.
Calculate taxable wages.
The total wages paid this quarter minus excess wages gives the employer's taxable wages for the quarter.
| Total Wages | - | Excess Wages | = | Taxable Wages |
| $11,000 | - | $0 | = | $11,000 |
This is item 6, "Taxable Wages" on the Quarterly Contribution and Wage Report.
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