Taxable wages, in
payroll, is the sum of all earnings by an employee that are eligible for a particular type of
tax. Each tax is different and has different
regulations about limits to the amount of
wages that can be considered taxable with respect to that tax.
In the United States, contributing to a
401(k)
In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code. Periodical employee contributions come directly out of their ...
account will cause one's taxable wages to be lower than gross wages. Some taxes, such as
Social Security, have other exemptions.
References
Wages
A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remuner ...
Tax codes
Tax law
Wages and salaries
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