Results 1 to 3 of 3
  1. #1

    Default What Are Social Security Wages On A W-2

    What is social security wages? How do you calculate it?
    Why is the the number bigger than gross wages? or on some w-2's that number is the same as gross wages...

  2. #2
    Join Date
    Oct 2006
    Posts
    5,374

    Default Re: What Are Social Security Wages On A W-2

    Quote Quoting october20052005
    View Post
    What is social security wages? How do you calculate it?
    Why is the the number bigger than gross wages? or on some w-2's that number is the same as gross wages...
    If you contribute to a 401k, or other retirement plan at work, then your gross wages will have that portion of your wages excluded, but your social security wages will not.

  3. #3
    Join Date
    Apr 2007
    Posts
    62

    Default Re: What Are Social Security Wages On A W-2

    Panther is right in his disclaimer when he cites the economics axiom to the efffect that you get what you pay for.

    While the previous response is good as far it goes, it doesn't answer the question. Social Security wages are the wages on which you are taxed for Social Security (6.2%). It may differ from gross wages because certain non-taxable items are non-taxable for income tax purposes and NOT Social Security and Medicare (1.45%). Additionally, Social Security wages have a ceiling of $97,500 for 2007, which changes annually, whereas Medicare wages have no limit.

    Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit increases each year with increases in the national average wage index. We call this annual limit the contribution and benefit base. For earnings in 2007, this base is $97,500.

    The OASDI tax rate for wages paid in 2007 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $97,500 would contribute $6,045.00 to the OASDI program in 2007, and his or her employer would contribute the same amount. The OASDI tax rate for self-employment income in 2007 is 12.4 percent. (Tax rates of 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons, are applied to all earnings—without a taxable maximum—under Medicare's Hospital Insurance program.)


    http://www.ssa.gov/OACT/COLA/cbb.html

    1. Sponsored Links
       

Similar Threads

  1. Social Security Issues: Social Security Quarters: is It Possible to Pay into Social Security
    By marilynn lightner in forum Social Security Law
    Replies: 2
    Last Post: 01-14-2011, 05:43 AM
  2. Medicare and Medicaid: Denied Medicaid Due to Social Security and Part Time Wages
    By mikethedog in forum Disability and Elder Law
    Replies: 1
    Last Post: 07-31-2010, 06:33 AM
  3. Social Security Issues: Social Security Opt Out
    By 80nkicking in forum Social Security Law
    Replies: 1
    Last Post: 07-06-2010, 12:06 PM
  4. Disability Benefits: Can Social Security spy on you?
    By themudboy in forum Social Security Law
    Replies: 1
    Last Post: 02-09-2006, 12:11 PM
  5. Disability Benefits: Social Security Benefits & Wages / Salary
    By I Need SSI / SSDI in forum Social Security Law
    Replies: 1
    Last Post: 10-17-2005, 09:51 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Free Tax Forms
Download free federal tax forms.




Untitled Document