Life · Chapter 12 · Characteristics & Funding
Taxable Wage Base
Definition
The maximum annual earnings subject to the Social Security portion of FICA tax, indexed yearly to the national average wage index. Applies to employers, employees, and the self-employed alike. Medicare taxes have no wage base cap.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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