The Taxable Wage Base is the amount of an employee's wages upon which the employer is required to pay unemployment taxes each year. The taxable wage base may change from year to year. The taxable wage base for calendar year 2000 and after is $9,000.
Unemployment taxes (contributions) must be paid on the first $9,000 of an employee's wages per year. If an individual works for two or more employers, both employers are required to pay unemployment taxes on the first $9,000 each employer pays to that individual.
Taxable wages are determined based on actual remuneration paid and may not be prorated over the entire year.
If you acquire a business and ODJFS determines that you are a successor in interest, wages paid to an employee by the predecessor employer in the year of acquisition should be counted toward the taxable wage limitation for that year.
Total taxable wages paid to all employees in a quarter should be multiplied by the annual tax rate, as shown on the employer's Quarterly Tax Return (JFS-20127), in order to determine the amount of unemployment taxes due for the quarter. Please click here for more information on reporting.