Wage base limits

A taxable wage base limit is the amount of wages that are subject to taxes in a given time period. Once an employee has hit the wage base limit for a tax, the employee and/or employer are no longer responsible for paying that specific tax in the current year.

These common payroll taxes have annual wage base limits per employee:

We'll stop applying a tax for an employee in payroll once the year-to-date wages hit the wage base limit.

At the start of the next year, we'll reset the year-to-date amount so that the tax is applied again until the annual wage base limit is met.

How employees moving states affects wages bases and state unemployment taxes

If an employee moves states, the new state's unemployment wage base limit will apply—this means: