What Is Taxable Under District Of Columbia Unemployment Insurance Law?

Employers who pay contributions (contributory employers) pay a tax based on their assigned tax rate and wages paid to each employee up to the taxable wage base that is in effect for the calendar year. The following are examples of how to determine wages that are taxable: Examples Of Taxable Wage Calculations Employee A: Wages never exceed taxable wage base of $9,000 for this calendar year.
Reporting Quarter QTR 1 QTR 2 QTR 3 QTR 4
Wages Paid $2,000 $2,000 $2,300 $2,000
Non­taxable Wages $0 $0 $0 $0
Taxable Wages $2,000 $2,000 $2,300 $2,000
Employee B: Wages exceeded taxable wage base of $9,000 in 2nd quarter.
Reporting Quarter QTR 1 QTR 2 QTR 3 QTR 4
Wages Paid $4,500 $5,500 $6,000 $5,000
Non­taxable Wages $0 $1,000 $6,000 $5,000
Taxable Wages $4,500 $4,500 $0 $0
Employee C: Wages exceeded taxable wage base of $9,000 in 1st quarter.
Reporting Quarter QTR 1 QTR 2 QTR 3 QTR 4
Wages Paid $20,000 $20,000 $20,000 $25,000
Non­taxable Wages $11,000 $20,000 $20,000 $25,000
Taxable Wages $9,000 $0 $0 $0
Employee A+B+C: Quarterly Totals
Reporting Quarter QTR 1 QTR 2 QTR 3 QTR 4
Wages Paid $26,500 $27,500 $28,300 $32,000
Non­taxable Wages $11,000 $21,000 $26,000 $30,000
Taxable Wages $15,500 $6,500 $2,300 $2,000
Wages are only taxable once during a year regardless of whether they were reported to another state. For example, if you had an employee working in another state and paid taxes on his/her wages up to $8,500, and then moved the employee to a DC job site, only the first $500 of wages paid in DC would be taxable (the difference between DC's taxable wage base of $9,000 and the $8,500 in wages which were already taxed).

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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