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


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