Job & Family Services
Office of Unemployment Insurance Operations
|Taxable Wage Base|
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
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.
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