What are payroll taxes and who is responsible for paying them?

[Eleni]

I’m trying to understand payroll taxes. I know they are related to employee salaries and deductions, but I’m not clear on what they include or how they are calculated. Can someone explain what payroll taxes are and whether they are paid by the employer, employee, or both?

 

[Sanji]

Payroll taxes are taxes tied to employee wages, mainly things like Social Security, Medicare, and income tax withholding; in practice, both employees and employers share the responsibility. Employees have taxes deducted from their pay, while employers match certain portions (like Social Security and Medicare) and also handle paying and filing them with the government.

 

[William]

Payroll taxes are basically the taxes that are deducted from an employee's salary and paid to the government, they include social security taxes and medicare taxes, which are used to fund social security and medicare programs. The calculation is usually a percentage of the employee's salary, and it's typically split between the employer and the employee, so both parties are responsible for paying them. The employee's portion is usually deducted from their paycheck, while the employer's portion is paid separately, so it's kind of a shared responsibility, with the employer also handling the administrative side of things.

 

[lisa]

Payroll taxes are taxes taken from wages to fund government programs (like income tax and social security).

• Employees: pay through salary deductions
• Employers: also pay a share (and handle payments)

both employees and employers are responsible.