July 23, 2020
For those whose income exceeds $100,000 annually, do I use the 8/52 formula or, since I’m a semi-monthly payer, do I divide by the 24 equal payments I make over the course of the year?
Posted by Armanino Financial Advisory Team
No, do not divide by the number of payments. Instead, the maximum amount allowable to be claimed for any employee is either 8/52 or 24/52 of $100,000, depending on the number of weeks in your Covered Period.