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
State Social Security Administrators
Offices—RSI Team Leaders
Social Security Field Offices—District Managers
General Counsel Staff
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
This section includes an updated PDF file of the entire subchapter.
SL 70001.725 Maximum Creditable
This section explains the meaning of the term “maximum creditable wages” and how it
is credited in multiple State and local government employer situations.
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
Subsection B. explains how an individual’s wage amounts are credited for work performed
for multiple State and local government employers.
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.