Which of the following is NOT included when calculating SS Taxable Wages?

Deferral contributions are amounts that employees choose to withhold from their wages and instead direct towards retirement plans or similar accounts, such as a 401(k). These contributions are not included in the calculation of Social Security taxable wages because they are not considered current income subject to taxation under the Social Security tax framework. The intention behind deferring income is to save for retirement, and as such, the IRS allows these amounts to be excluded from taxable wages for Social Security purposes.

In contrast, SS tax-exempt wages, meals and tips, and third-party sick pay could all potentially impact the calculation of Social Security taxable wages. For instance, certain wages may be exempt from SS tax depending on the situation, and various forms of compensation, including tips and certain types of sick pay, can be included in the gross income that is subject to Social Security taxes. Thus, understanding the exclusion of deferral contributions helps clarify the boundaries of taxable wages in relation to Social Security taxes.