Social Security Wage Base Definition
The Social Security wage base sets the maximum limit of annual wages that can be taxed for Social Security benefit programs.
The Social Security Administration (SSA) annually determines the wage base limit that can be taxed for the SSA benefit programs. Any earned wages that exceed the wage base limit are not subject to Social Security taxes. Called the Contribution and Benefit Base, the Social Security wage base also states the tax rate for both employees and employers.