Payroll taxes are taxes that employers are required to withhold from their employees' paychecks and pay to the government on their behalf. These taxes are used to fund various government programs, such as Social Security and Medicare.
Payroll taxes are calculated as a percentage of an employee's wages. The two main types of payroll taxes are Social Security and Medicare taxes. Social Security tax is currently 6.2% of an employee's wages, up to a certain amount, while Medicare tax is 1.45% of an employee's wages, with no limit on the amount of wages subject to the tax.
Payroll taxes are separate from income taxes. While payroll taxes are paid by both employers and employees, income taxes are paid only by employees. Income taxes are based on an employee's total income for the year, while payroll taxes are based only on an employee's wages.
Yes, employers can be held responsible for not paying payroll taxes. If an employer fails to withhold payroll taxes from their employees' paychecks or fails to pay the taxes to the government, they can be subject to penalties and fines. In some cases, employers can even face criminal charges for failing to pay payroll taxes.