What is the social security wage base limit for the tax year 2020?
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Last modified 9/24/2020 5:14:10 PM EST |
Added by ExpressEfile Team
Every individual who is getting paid equal to or above $137,000 is liable to pay 6.2% from their wages as a Social Security tax. This basic limit of $137,000 is said to be the Social Security wage base limit. Employers should also contribute 6.2% to the Social Security tax.
Each year this base limit changes according to the national average wage. It is commonly known as the social security wage base limit. For 2020, it has been fixed to $137,000. If you reach the social security wage base threshold limit for a year, you don’t have to contribute to the Social Security tax. For more information, click here.