What is the limit for Social Security wages in 2023?

The limit for Social Security wages in 2023 is set at $160,200. This figure is determined each year by the Social Security Administration and represents the maximum amount of earnings subject to Social Security tax. Earnings above this cap are not included when calculating Social Security benefits and do not incur Social Security taxes.

While the answer provided, indicating $128,400, was accurate for the year 2018, it does not reflect the updated limit relevant to 2023. Each year, the cap usually increases in accordance with the National Average Wage Index, which is why it's important to consult the latest data when dealing with payroll calculations. Ensuring knowledge of the correct threshold not only aids in compliance but also affects calculations related to payroll taxes and benefits.