Taxable Wage Base

The Taxable Wage Base is the maximum amount of an employee’s wages subject to Social Security tax in a year, set annually by the SSA (e.g., $168,600 in 2025).

1. What is the taxable wage base?
   Answer: It is the maximum wage subject to Social Security tax.
   
2. What is the 2025 limit?
   Answer: It is $168,600.
   
3. What is it used for?
   Answer: It funds Social Security benefits.
   
4. Does Medicare have a base?
   Answer: No, Medicare taxes all wages.
   
5. How does HR apply it?
   Answer: HR tracks wages against the cap for payroll.