Social Security Taxable Wages Definition
Social Security taxable wages are the wages subject to Social Security taxes. These taxes support the benefit programs under the Social Security system (i.e., monthly benefits for retired and disabled workers and survivors of deceased workers).
Social Security Taxable Wages Expanded Definition
Social Security taxable wages are calculated by taking gross pay minus Section 125 pre-tax deductions up to the Social Security wage base limit.
Each year, the Social Security Administration posts its new Social Security wage base limit, or Contribution and Benefit Base, for the upcoming year.
Last Updated By
Rachel Blakely-Gray | May 01, 2023