Social Security Tax — Payroll Definition

Social Security Tax paystub meaning: The 6.2% payroll tax that funds federal retirement and disability benefits (OASDI). Codes: OASDI / SS.

The 6.2% payroll tax that funds federal retirement and disability benefits (OASDI).

Social Security tax, officially called OASDI (Old-Age, Survivors, and Disability Insurance), is a 6.2% tax on your gross wages up to the annual wage base limit ($184,500 in 2026). This tax funds monthly benefits for retirees, disabled individuals, and survivors of deceased workers. Once you earn above the wage base, you stop paying Social Security tax for the rest of the year — which is why high earners may notice their paychecks getting slightly bigger late in the year.

Tax entries on a pay statement depend on taxable wages, current employee elections, filing status, pay frequency, jurisdiction, and current agency instructions. Compare the current-period amount with year-to-date totals and the employer-issued record before treating it as final.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.