Social Security Taxable Wages Definition
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 minusSection 125 pretax deductionsup to the Social Security wage base limit (which changes annually). Each year the Social Security Administration posts their newContribution and Benefit Basefor the upcoming year.
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