How do I compute excess wages as needed for line C2 on the quarterly Unemployment Tax and Wage Report?
Line C2 is the amount of wages you paid to an employee during the quarter being reported that exceeds $7,000.00 year-to-date. Excess wage amount can equal line C1, but may never be greater than line C1. Example: An individual is employed January 1st through December 31st and is paid $2,800.00 per quarter for an annual total of $11,200.00. In the first and second quarters, all wages are taxable and there are no excess wages or entry on line C2. In the third quarter, $1,400.00 exceeds $7,000.00 year-to-date and is entered on line C2. All the earnings in the 4th quarter exceed $7,000.00 and are entered on line C2.
