The purpose of the wage base used for the Social Security tax is ________.
A)to determine when to start withholding the tax from an employee's pay
B)to establish a maximum salary level for application of the tax to employee pay
C)to determine the amount of Social Security tax to withhold from an employee's pay
D)to compute the total amount of Social Security tax that a firm must pay

Question

Quizplus · Accepted Answer

The wage base used for the Social Security tax is the maximum salary level for application of the tax. Currently, the wage base is $137,700, meaning that an employee earning more than this amount does not have Social Security taxes withheld on income above this limit.

The Purpose of the Wage Base Used for the Social