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Reporting Wages - Excess Wages

Computing Excess Wages for the Quarterly Unemployment Tax and Wage Report

Line C2 on the quarterly Unemployment Tax and Wage Report is the total amount of wages you paid to all your employees during the quarter being reported that exceeds the first $7,000 you paid to each of them in the calendar year-to-date. The total quarterly excess wage amount can be less than or equal to the total quarterly gross wages (line C1), but can never be greater than the total quarterly gross wages.

Example: An employer has one employee, who is employed January 1 through December 31 and is paid $2,800 per quarter for an annual total of $11,200. In the first and second quarters, all wages are taxable and there are no excess wages, so 0 is entered on line C2. In the third quarter, $1,400 of the wages exceed $7,000 year-to-date, so $1,400 is entered on line C2. All the quarterly wages in the 4th quarter exceed $7,000 year-to-date and are entered on line C2.

Excess Wage Calculation Example

 1st Qtr2nd Qtr 3rdQtr4thQtr
Quarterly Gross Wages$2,800$2,800$2,800$2,800
Year-to-Date Total$2,800$5,600$8,400$11,200
Calculations:

Subtract $7,000 from the Year-to-Date Total.
If the difference is negative, enter 0.
If the difference is positive, enter that amount unless it is greater than the quarterly gross wage amount.
If the difference is greater than the quarterly gross wage amount, enter the quarterly gross wage amount.

2,800
-7,000
-4,200		5,600
-7,000
-1,400		8,400
-7,000
1,400		11,200
-7,000
4,200
Excess Amount to be Entered on Line C200$1,400$2,800

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