U.S. Social Security Administration, Office of Retirement and Disability Policy.

Social Security Administration's Master Earnings File: Background Information

 
by Anya Olsen and Russell Hudson
Social Security Bulletin, Vol. 69 No. 3, 2009

Text description for Chart 3. Summary of earnings in the Social Security Master Earnings File

1937–1950: Aggregate covered earnings

1951–1977: Quarterly earnings data reported by employer

1978 to date: Annual wage, salary, and tip income (covered and noncovered) reported on Form W-2; covered self-employment income reported on Form 1040 SE a

1990 to date: Summary deferred compensation

1991 to date b: Taxable Medicare earnings above the taxable maximum

2004 to date: Detailed deferred compensation

a. For 1978 to 1990, self-employment income is included only to the extent that it is taxable under the Social Security program. In general, during this period there is no way to break out the amount of covered earnings from wages and salary, self-employment income, or earnings from agriculture. Beginning in 1991, there is a difference between the maximum amount of earnings covered under Social Security and the Medicare program. In 1994, the cap on taxable Medicare-covered earnings was eliminated. As a result, 1994 is the firstyear in which earnings data provide a full accounting for wage and salary, tip, and self-employment income.
b. Beginning in 1991, the amount of earnings taxable under the Social Security program and under the Medicare program differed. From 1991 to 1993, there were caps on the total amount of earnings taxable under the Medicare program. In 1994, the cap on the amount of earnings taxable under the Medicare program was eliminated.

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