They 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. They must not be paid to the employee by the employer if the employee doesn’t satisfy the need for social security benefits.
For the year f 2021, these wages have a minimum taxable income of $ 1,42,800 for the year 2021 which includes qualified wages of an employee.
Following items are excluded:
Yes tips are included in the social security wages if the payment of tip is more than 20$. Tips that count as these Wages include: