Taxable Wage Base

Income Tax Taxes Financial Terms Dictionary

Contents

The taxable payroll base is the maximum amount of earned income on which employees must pay Social Security taxes.

The taxable wage base is also known as the Social Security pay base.
In 2022, the maximum amount of income that taxpayers must pay Social Security tax on is $147,000.
As for the social security tax, the employer pays half the tax and the employee pays the other half.
Some government unemployment agencies use the payroll tax base to calculate unemployment taxes.