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Payroll tax is a type of tax imposed on employers or employees, or both, to fund various social insurance programs. It is usually calculated as a percentage of the salaries that employers pay their staff. The funds collected are typically used to finance social security and other government programs.
Payroll taxes are typically imposed on both employers and employees, although the burden of the tax may not be equally shared. Employers are generally responsible for withholding the tax from employee wages and paying it to the government. Employees may also be required to pay a portion of the tax directly.
Payroll taxes are typically imposed at the federal, state, and local levels. The federal government imposes payroll taxes to fund Social Security and Medicare, while state and local governments may impose payroll taxes to fund unemployment insurance and other programs.
Companies in the payroll tax market include ADP, Paychex, Intuit, and Gusto. Show Less Read more