What are the total wages paid to an employee that are subject to Social Security tax called?

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The term that refers to the total wages paid to an employee that are subject to Social Security tax is known as "Social Security Wages." This classification specifically denotes the amount of compensation that is considered when calculating how much an employee and their employer must contribute to Social Security.

Social Security wages include most forms of compensation, such as hourly wages, salaries, bonuses, and overtime pay, up to a certain cap set by the IRS. It is essential for tax reporting and compliance, ensuring proper contributions are made towards the federal old-age, survivors, and disability insurance program.

Other terms like "Taxable Income" and "Tax Liability" encompass broader concepts and do not specifically relate to wages subject to Social Security tax. "Taxable Income" refers to the total income that is subject to income tax after all deductions and exemptions, while "Tax Liability" indicates the total tax owed to the government based on taxable income. "Earned Income" includes all income generated from work but does not exclusively denote the wages that are liable for Social Security taxes. Thus, "Social Security Wages" is the most precise term for the context of the question.

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