The wage base on which Social Security tax is computed __________.
A)increases each year
B)remains the same for long periods of time
C)after adjusting for inflation
D)increases by the amount of the employer's contribution

Question

The wage base on which Social Security tax is computed __________. ​
A)increases each year
B)remains the same for long periods of time
C)after adjusting for inflation
D)increases by the amount of the employer's contribution

Quizplus · Accepted Answer

The wage base on which Social Security tax is computed increases each year. For example, in 2020, the wage base was $137,700, but in 2021 it increased to $142,800. This means that individuals earning above $142,800 in 2021 will not pay Social Security tax on any amount above that limit.

The Wage Base on Which Social Security Tax Is Computed