Payroll Tax (redirected from Payroll taxes)

Payroll Tax

Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax.

Notes:

Governments use revenues from payroll taxes to fund such programs as social security, health care, unemployment compensation, worker's compensation, and sometimes even local governments require a small tax to maintain and improve local transportation.

On an employee pay stub, payroll taxes deducted are likely to be itemized.

See also: Flat Tax, Income Tax, Local Tax, Medicare Wages, Progressive Tax, Taxes, Withholding