What is the maximum Social Security tax that can be withheld from an employee's wages for the year 2023?

The maximum Social Security tax that can be withheld from an employee's wages for the year 2023 is determined by the Social Security wage base limit and the tax rate. For 2023, the wage base limit for Social Security is $160,200. The tax rate for Social Security is set at 6.2%.

To calculate the maximum tax, multiply the wage base limit by the tax rate:

$160,200 (wage base limit) x 6.2% (tax rate) = $9,932.40.

Therefore, the amount that can be withheld from an employee's wages for Social Security tax in 2023 is $9,932.40, making this the correct answer. Understanding these calculations helps taxpayers and employers manage payroll deductions accurately, ensuring compliance with tax regulations.