TN 1 (05-05)

SL 90005.002 Transmittal 1 to SL 70001, May 2005

   

Part 19 - State and Local Coverage Handbook

Chapter 700 - Covered Wages

Subchapter 01 - Covered Wages

Transmittal No. 1, 05/2005

   

Audience

State Social Security Administrators
Regional Offices—RSI Team Leaders
Parallel Social Security Field Offices—District Managers
Regional General Counsel Staff

   

Originating Component

OISP

   

Effective Date

Upon Receipt

   

Background

POMS section SL 70001.725 contains information concerning the maximum creditable wages that may be credited to a worker’s Social Security earnings record each year. Amounts that exceed the maximum amount specified by Section 230 of the Act will not be used in benefit computations. Also discussed are the crediting of maximum wage amounts in multiple State and local government employer situations and the maximum creditable wages for Medicare taxation purposes. A hyperlink is included to the maximum creditable wages list at the Office of the Actuary’s webpage. Some of the information in this section is a reinstatement of material originally posted as Section 703 in the August 1995 version of the State and Local Handbook (SSA-Pub. No. 16-055). Section 703 was removed when the Handbook was posted online.

   

Summary of Changes

SL 70001.001 SLCH Subchapter 70001 – PDF File

   

This section includes an updated PDF file of the entire subchapter.

   

SL 70001.725 Maximum Creditable Wages

   

This section explains the meaning of the term “maximum creditable wages” and how it is credited in multiple State and local government employer situations.

   

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  Subsection A. defines the term “maximum creditable wages,” explains that the wage limit applies to the calendar year in which the wages are paid, and provides a hyperlink to the maximum creditable wages list at the Office of the Actuary’s webpage. This reinstates material that was omitted when the State and Local Handbook was placed online.

   

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  Subsection B. explains how an individual’s wage amounts are credited for work performed for multiple State and local government employers.

   

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  Subsection C. discusses how the amount of “maximum creditable wages” for Medicare taxation purposes was determined in the past and how subsequent legislation changed the amount and ultimately did away with the maximum creditable wage limit for Medicare.