Social Security Wage Base Law and Legal Definition

Social security wage base refers to a person’s income that can be taxed for the purpose of financing his/her social security. Social security wage base is a form of social security tax. Average earnings of workers help in determining a worker's Social Security benefit.

Social security wage base may differ for a person who is working in two or more companies. In such case, a person’s social security deduction could increase the standard wage base rate. The wage base is calculated on a person’s personal return and is contributed towards his/her federal taxes.