Investor Glossary-taxable wage baseInvestor Glossary-taxable wage baseInvestor Glossary-taxable wage baseInvestor Glossary-taxable wage baseInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Taxable Wage Base

The HTML to link to this page
 

The taxable wage base refers to the amount of wages on which taxes are collected. The term taxable wage base is most often associated with Social Security taxes but can be used for other types of wage based taxes (e.g. state's unemployment taxable wage base). The maximum taxable wage base is set by law and is expressed in dollars. For Social Security taxes, the taxable wage base is defined as the contribution and benefit base under section 230 of the Social Security Act. The social security taxable wage base is the amount of earnings subject to social security withholding (i.e. social security portion of the Federal Insurance Contributions Act - FICA taxes). Another taxable wage base is the amount of wages subject to unemployment taxes. This taxable wage base is set by state governments (but must be equal or greater than the wage base set by the Federal Unemployment Tax Act - FUTA). The maximum amount of wages subject to Social Security tax withholding is higher than an average gross salary. As a result, for most employers, an employee's annual gross salary and taxable wage base are the same. The amount of gross salary exceeding the taxable wage base is referred to as excess wages.



Rate this taxable wage base definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: current ratio, quality assurance, labor relations, Key Rate Duration, 1031 exchange, APR, 1035 exchange, open position, LIBOR, phantom income, minority interest, retained earnings, option premium, deferred revenue, class C shares, balance sheet, stock market close, stock split, irrevocable trust, margin rate, average price per share, cancelled check, in escrow, risk management, inflation, FTSE, dividends payable, command economy, required rate of return, Zero Cost Collar, ex-dividend, implied volatility, limit order, 144a, debt service coverage, reverse mortgage, diluted share, wholly-owned subsidiary, per diem, real GDP, covered put, EBITDA, 401a, liquidity ratio, FICO score, ex-dividend date, annual return, VIX, deferred tax


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use