Question

in 2013, the social security administration announced that the social security maximum taxable earnings would be capped at $113,700. that means that earnings and wages above that amount would not be taxed.

Answer 1

There is a cap on how much of your wages are taxed by Social Security if you are employed. The term "maximum taxable earnings" refers to this sum.

The Social Security limit is what Why is this cap there?

Social Security tax and Medicare tax are the two components that make up the Federal Insurance Contribution Act (FICA) tax. A total of 12.4% is the Social Security tax, which is 6.2% for the employee and 6.2% for the employer. Any income in excess of a threshold of $147,000 in 2022 ($160,200 in 2023) will not be taxed.

Why might the advantages I receive be capped?

There may be a maximum amount of money you are eligible to receive if you are receiving certain benefits. if you lose your job When your income exceeds this threshold, your Housing Benefit or Universal Credit will be decreased until it does.

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