Payroll tax

A payroll tax is a tax withheld from an employee’s salary by an employer who remits it to the government on their behalf. The tax is based on wages, salaries, and tips paid to employees. Payroll taxes are deducted directly from the employee’s earnings and paid directly to the Internal Revenue Service (IRS) by the employer. In the United States, payroll taxes are divided into three main categories: Federal income, Medicare, and Social Security. The government also collects money for federal unemployment programs—Read more at Investopedia. Kagan, Julia. “Payroll Tax.” 25 November 2019