Course Outline
Join PRO

What is the maximum amount of earnings subject to the Social Security tax in 2022 and 2023?

Author:
Harold Averkamp, CPA, MBA

2022 Annual Earnings Limit for Social Security Payroll Tax

The maximum amount of an employee’s 2022 earnings (and a self-employed person’s net income) that is subject to the Social Security payroll tax is $147,000. This amount is also known as the Social Security annual wage limit, wage base, contribution and benefit base, ceiling, tax cap, and maximum taxable earnings. The maximum amount is adjusted annually based on a national average wage index.

2023 Annual Earnings Limit for Social Security Payroll Tax

For the calendar year 2023 (January 1 through December 31, 2023) the maximum amount of an employee’s earnings that is subject to the Social Security payroll tax is $160,200.

An Employer Must Match Its Employees’ Social Security Payroll Taxes

The annual earnings limit is used when computing each employee’s maximum Social Security tax as well as the employer’s Social Security payroll tax amounts. (The employer must remit to the U.S. government two times the Social Security payroll tax withholdings.)

Social Security Payroll Tax is One Part of the FICA Payroll Tax

The combination of the Social Security payroll tax and the Medicare payroll tax is referred to as the FICA tax. However, there is no annual limit or cap on the earnings when computing the Medicare tax for the employee, the self-employed person, or the employer.

Join PRO to Track Progress
Must-Watch Video

Advance Your Accounting and Bookkeeping Career

  • Perform better at your job
  • Get hired for a new position
  • Understand your small business
  • Pass your accounting class
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Certificates of
Achievement

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus