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

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use