taxable wage base

Definition

The maximum dollar amount of wages that is subject to Social Security taxes. Wages in excess of this amount are not subject to Social Security taxes. Note that there is no cap on wages subject to Medicare taxes.

Use taxable wage base in a sentence

You should try to know where you stand in the taxable wage base and figure out the best way to proceed from that.

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Since Susan has been making more than the taxable wage base, only a portion of her wages are now subject to social security taxes.

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My boss met with our senators last week and he urged them to increase the cap on Social Security wages so that we could increase the taxable wage base.

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