tax
Payroll Tax
Tax withheld from employee wages
Also known as: employment tax, fica tax, withholding tax
What You Need to Know
Payroll taxes are taxes withheld from an employee's wages and paid to the government by the employer. They include Social Security, Medicare, federal income tax, and state/local income taxes. Both employees and employers contribute to Social Security and Medicare taxes.
Sources & References
This information is sourced from authoritative government and academic institutions:
- irs.gov
https://www.irs.gov/businesses/small-businesses-self-employed/employment-taxes
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