What is the social security wage base limit for the tax year 2021?
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Last modified 3/23/2021 2:24:12 AM EST |
Added by ExpressEfile Team
Every individual who is getting paid equal to or above $142,800 is liable to pay 6.2% of their wages as a Social Security tax. This basic limit of $142,800 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 2021, it has been fixed to $142,800. 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.