Taxable Wage Base

7.65% on the first $106,800 (2009) of employees wages

FICA Tax

Federal Insurance Contributions Act

6.2% Social Security (limited to first $106,800) and 1.45% Medicare on all wages 

SECA Tax

Self-Employment Contributions Act

15.3% on first $106,800 and 2.9% on amounts over $106,800

Fully Insured

(For SS benefits)

Once 40 quarters of credit

Currently Insured

(for SS benefits)

At least 6 quarters of coverage out of 13 quarter period ending with the quarter in which death occurs.

Disability Insured

(for SS benefits)

Required that:

1 - be fully insured

2 - have a minimum amount of work under SS within a recent time period

Full Retirement Age
(for ss benefits)

66 (2009)

Primary Insurance Amount

(PIA)

Used to determine Social Security benefits. PIA is applied to AIME.

Average Indexed Monthly Earnings

(AIME)

An individual's wage history (capped at taxable wage base) is averaged and the resulting average indexed monthly earnings are used to generate a person's primary insurance amount under Social Security. 

Family Maximum

Max benefits paid to 2 or more members of a family.

Earnings Test

A restriction in Social Security pay status applied to people who earn over a threshold amount.  These people will 'lose' some of their Social Security benefit.

Provisional Income

A taxpayer's adjusted gross income plus tax-exempt interest income plus 1/2 of Social Security Income.