United States
"Social Security Wages"

What is Social Security Wages ?

Social Security wages are the portion of earnings that are subject to the FICA tax. These wages are utilized by the SSA to calculate retirement Social Security benefits. 

How Social Security Wage Base Works ?

Taxable base refers to maximum amount of earned income on which employees must pay Social Security taxes. The employee's gross wages are generally equal to taxable wage base. 

Who is Subject to Social Security Wages ?

According to the IRS, any "employee in the United States, regardless of the citizenship or residence of either the employee or employer", is liable to Social Security wages.

What is Excluded From Social Security Wages ?

Monthly tips of $20 or less, Workers compensation benefits, Reimbursed business travel expenses. Employer-paid health or accident insurance premiums and more.


What is Included in Social Security Wages?

Hourly wages and salaried wages, Commissions, Bonuses, Paid time off, Tips that exceed $20 per month, Sick time & Elective retirement contributions.

Social Security Wage Base for 2023

Social Security wage base for 2023 is $160,200. If an employee earns more than the yearly pay base, no Social Security taxes should be withheld & no further contributions should be made.

Social Security Tax Rate

Social Security tax rate is 12.4%. Half of the tax, which comes to 6.2%, is paid by the employer & the employee is responsible for paying the other half through payroll deductions. 

How to Calculate Social Security Wages ?

Take the employee's gross pay amount and deduct any exclusions, such as reimbursed travel expenditures and HSA contributions, to get the employee's Social Security wages.

Where are Social Security Wages Reported ?


You must report both wages subject to income tax and Social Security wages on the W-2 form you provide to employees.