WageBaseOld returns the “old-law” Social Security Contribution and Benefit Base for a year. This is the base that would have been effective without the enactment of the 1977 amendments to the Social Security Act. The present-law contribution and benefit base is substantially higher than the old-law base.
The
determination of the old-law contribution and benefit base for 2021 is provided
in the Social Security
web site.
The formula for
determining the old-law contribution and benefit base is set by law. The
formula is applicable only if a cost-of-living increase becomes effective for
December of the year in which a determination of the base would ordinarily be
made. Because there is a cost-of-living increase for December 2020, the formula
is applicable. According to the formula, the old-law contribution and benefit
base for 2021 is determined to be the 1994 old-law base ($45,000) multiplied by
the ratio of the national average wage index for 2019 to that for 1992, or, if
larger, the 2020 old-law base ($102,300). If the amount so determined is not a
multiple of $300, it is rounded to the nearest multiple of $300.
The “old law” Wage Base
for year 𝑥 is based on the
following formula:
|
If SSCOLA = 0, then use prior year's amount. The resulting amount is rounded to the nearest
$300; not less than the prior year’s amount. Note: Amounts for 1937-1974 and for 1979-1981 were set by
statute; all other amounts were determined under automatic adjustment
provisions of the Social Security Act. |
More information can be
found at the Social Security
web site.
Syntax
WageBaseOld (DeterminationYear, [LawYear],
[WageInflation])
|
Parameter Name |
Description |
|
DeterminationYear |
A
4 digit number. If the DeterminationYear is after the LawYear, this
is a projected calculation based on the WageInflation assumption. |
|
LawYear |
A
4 digit number. |
|
WageInflation |
The
assumed rate of increase in the National Average Wage. This
is used only for a projected calculation. Optional:
default = 0% |