How do I figure excess wages?

Excess wages are the portion of wages paid in a quarter that are above the yearly taxable wage base.

In the examples below, $13,000 is the taxable wage base that is used to calculate excess. For a more detailed example, this site has a demonstration of a business′ excess wage calculations for each quarter in a year. 

1.    John Smith
The amount of excess wages in any quarter depends on the total wages the worker has earned in the year. Once a worker earns as much as the taxable wage base ($13,000), anything earned after that is excess wages. However, you report only the excess wages earned by the employee in a quarter, so an employee's excess wage amount is never more than the wages for the quarter.

 

 

Quarter Wages

Total Wages
for the year

Excess Wages
for the Quarter

Taxable Wages for the Quarter

1st Quarter

$4,000.00

$4,000.00

$0.00

$4,000.00

2nd Quarter

$4,000.00

$8,000.00

$0.00

$4,000.00

3rd Quarter

$5,000.00

$13,000.00

$0.00

$5,000.00

4th Quarter

$3,500.00

$16,500.00

$3,500.00

$0.00

 

2.    Jane Doe
Jane Doe has excess wages in the second quarter because she earned wages above the taxable wage base ($13,000). She had no wages in the third quarter, so she had no wages in excess of the taxable wage base that quarter. In the fourth quarter, all Jane Doe's wages were excess wages (when an employee has earned more than the taxable wage base, the wages in subsequent quarters will all be excess wages).

 

 

Quarter Wages

Total Wages
for the year

Excess Wages
for the Quarter

Taxable Wages for the Quarter

1st Quarter

$7,000.00

$7,000.00

$0.00

$7,000.00

2nd Quarter

$7,000.00

$14,000.00

$1,000.00

$6,000.00

3rd Quarter

$0.00

$14,000.00

$0.00

$0.00

4th Quarter

$4,000.00

$18,000.00

$4,000.00

$0.00

Unemployment - Employers

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  2. What is a benefit claim?
  3. How is eligibility determined?
  4. How much can claimants receive?
  5. When and for how long can benefits be claimed?
  6. Will the employer be notified when a claim is filed?
  7. How can the employer protest the claim?
  8. What happens after an employer files a protest?
  9. Can an employer appeal a deputy’s determination?
  10. What penalties can be assessed against employers?
  11. What is a Mass Claim?
  12. What is the Shared Work Program?
  13. How can I request a work search waiver (recall date) for my employees who will be laid off on a temporary basis?
  14. What is the taxable wage base?
  15. How do I figure excess wages?
  16. Do I use the wages paid by the previous owner of my business when figuring excess wages?
  17. How should I report a probationary worker?
  18. Do I have to report family members?
  19. Is a cafeteria plan reportable and taxable?
  20. I didn′t pay wages this quarter. Do I have to file a Quarterly CW Report anyway?
  21. How do I adjust wages that I reported previously?
  22. How do I report workers who work in more than one state?
  23. Do I have to pay Missouri unemployment tax?
  24. How do I get set up to pay state unemployment tax?
  25. What will my tax rate be?
  26. Now that I have employees, what other agencies should I contact?
  27. Where can I get a Federal Employer Identification Number (FEIN)?
  28. What are the requirements for federal unemployment tax?
  29. Is Missouri a "credit reduction state"?
  30. How can I reduce my tax rate?
  31. Am I required to file the Missouri Quarterly Contribution and Wage Report electronically?
  32. How, when, and where to submit or mail my Quarterly CW Reports, payments, and magnetic media?

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