jobs main content

Calculating Excess Wages

Please see the following table for an example of how to calculate excess wages.

Excess Wage Base for 2022 is $41,600.00

Employee 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
John
Excess Wages
$10,000.00
$0.00
$10,000.00
$0.00
$10,000.00
$0.00
$10,000.00
$0.00
$40,000.00
$0.00
Mary
Excess Wages
$20,000.00
$0.00
$20,000.00
$0.00
$20,000.00
$18,400.00
$20,000.00
$20,000.00
$80,000.00
$38,400.00
Sue
Excess Wages
$1,000.00
$0.00
$1,000.00
$0.00
$1,000.00
$0.00
$1,000.00
$0.00
$4,000.00
$0.00
Total Wages $31,000.00 $31,000.00 $31,000.00 $31,000.00 $124,000.00
Excess Wages $0.00 $0.00 $18,400.00 $20,000.00 $38,400.00
Taxable Wages $31,000.00 $31,000.00 $12,600.00 $11,000.00 $85,600.00

* Contributions (taxes) are not paid on wages in excess of $41,600.00 for each employee.