Taxable Wage Limit is a limit for the year, and not the quarter. Once an employee reaches the defined Taxable Wage Limit, no more tax is owed.

Example:
Taxable Wage Limit = $12,000. This means that the organization is responsible for paying unemployment tax on the first $12,000 for each employee.

Employee John Smith earns $12,500 in Quarter 1 and $10,500 in Quarter 2.

In the Quarter 1 report, Taxable Wages = $12,000 and the limit is met for this emp.

In the Quarter 2 report, Taxable Wages = $0 because the limit was already met for this emp in Quarter 1.

Review the Calculations for Excess wages and Reportable Wages section starting on Page 20 in the Reconciling Your Unemployment Report document.

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