What are Social Security Wages?
Social security wages are the earnings or salary of an employee subject to the withholding of the federal social security taxes. The social-security taxes that are being withheld for the employee are 6.2%, and for the employer, it is 6.2%, according to the tax year 2020. The number of social security wages must not be paid to the employee by the employer if the employee doesn’t satisfy the need for social security benefits.
Social security wages comprise: –
- Commissions
- Paid Time off
- Hourly and salaried wages
- Elective retirement contributions
- Bonuses
- Sick time
- Payments in other kinds
- The tip is more than $20 per month
