What constitutes the "gross wages" reportable for unemployment insurance?
Reportable gross wages are wages after any Section 125 plan deduction, but before any 401K, IRA/ SEP, or 403B7 deduction. For the most part, the UI reportable wages will be the same as the wages reportable for Medicare purposes, with some exceptions, such as the imputed value of employee life insurance over $50,000. Section 125 plans (sometimes referred to as “cafeteria plans”) may include pre-tax deductions for health insurance, healthcare savings accounts, and childcare accounts.
