How do I calculate excess wages as needed for line B2 on the quarterly tax report?
The first $8,000 in wages is taxable. Everything an employee earns that exceeds $8,000 is considered “excess wages.” The example below illustrates how an employer would calculate taxable wages for the four quarters during the year:
Employer: ACME Corp.
| EIN: 99-9999
| |||
|---|---|---|---|---|
| Wages Paid | Wages Paid | Wages Paid | Wages Paid | |
| Name/SSN | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 |
John Smith ***-**-9999 | $5,000 | $12,000 | $12,500 | $13,000 |
| Calculation of Taxable wages. Tax is due on the first $8,000 per year | $ 8,000 – $5000 = $3000 | |||
| Taxable wages | $5,000 | $ 3,000 | $ 0 | $ 0 |
| Tax due (5%) | $250.00 | $150.00 | $ 0 | $ 0 |
