Social Security Wages

What are social security wages?

Social Security wages are an employee’s earnings subject to federal social security tax withholding. They are based on an individual’s gross income. Social security wage provides a guaranteed, and progressive benefit that keeps up with the increased cost of living.

However, they have specific inclusions and exclusions.

The inclusions generally include the following:

According to data, approximately 67 million people, or about 1 in 5 U.S. residents, received Social Security benefits in February 2024. Social Security is not just a retirement program; it also provides life insurance and disability insurance protection. These benefits are inclusive of class, race, gender, color, etc.; essentially, they are applicable for every citizen of the U.S.