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Social Security Taxable Wages Definiton

December 11, 2017

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Short Definition
The wages taxed that support the benefit programs under the Social Security system (i.e., monthly benefits for retired and disabled workers, and survivors of deceased workers).

Expanded Definition
Social security taxable wages are calculated by taking gross pay minus Section 125 pretax deductions up to the Social Security wage base limit (which changes annually). Each year the Social Security Administration posts their new Contribution and Benefit Base for the upcoming year.

Related Blog Article:
What Are Taxable Wages?
4 Things You Need to Know About Taxable Wages

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