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Wage base

The total amount of employee wages or earnings on which a payroll tax is calculated. 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. If there is an annual wage limit for the tax, the wage base for the calendar year does not exceed this limit. Go onlineExample of a wage base limit

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.

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