Wage base

The total amount of employee wages or earnings on which a payroll tax is calculated. glossary terms^payroll glossary terms, wage base, payroll taxes, wage base limits, . An employee's wage base can be different from his or her total gross wages if the employee has pre-tax deductions, such as a 401(k) contribution. glossary terms^payroll glossary terms, wage base, payroll taxes, wage base limits, . If there is an annual wage limit for the tax (for example, $7,000.00 for FUTA), the wage base for the calendar year does not exceed this limit. glossary terms^payroll glossary terms, wage base, payroll taxes, wage base limits, . QuickBooks calculates an employee's wage base using the total for salary, hourly wage, and commission payroll items, plus any additions to gross that are subject to a tax, minus any deductions from gross that reduce a tax.