I read Charles Reul's July 6 letter with respect to the cap on Social Security wages
, currently set at $102,000.
First up is gradually -- over 10 years -- phasing out the cap on earnings below which Social Security wages
31, 2013, and then, on its fourth quarter 2013 Form 941, it may reduce the fourth-quarter wages, tips, and other compensation on line 2; taxable Social Security wages
on line 5a (subject to the wage base limitation for the year); and taxable Medicare wages and tips on line 5c, all by the amount of the same-sex spouse benefits treated as wages for the first three quarters of 2013.
There is a withholding limit for Social Security wages
, but not Medicare wages.
Even if wages and growth rates remain fairly depressed, as the projection assumes, Social Security can be restored to balance by raising the base on which Social Security wages
Employees and employers would pay a percentage of their social security wages
with which they would purchase health insurance.
Notice if there is a difference between line 1 (wages, tips, other compensation) and line 3 (Social Security wages
The amounts are free of income and payroll tax withholding, because they are not included in Box I (wages, tips, or other compensation), Box 3 (Social Security wages
, if applicable), or Box 5 (Medicare wages and tips) of Form W-2.
Joe must file a Form W-2 for Mary's 1994 wages showing the entire $750 as social security wages
. Mary will receive credit for $750 of 1994 social security wages
Assume that the man, who has a long work history of maximum Social Security wages
, will turn 66 in 2009 and that the wife, who has no (or low) Social Security wages
, will turn 50 in 2009.
Because A was the service performer, the wages, although paid to B, are A's Social Security wages
. Thus, payments are reportable by Y as Social Security and Medicare wages on A's Form W-2, together with the with-holding.
Thus, social security wages
for a more-than-2% shareholder-employee should not include the value of employer-provided health benefits.