Payroll tax
Encyclopedia : P : PA : PAY : Payroll tax
Payroll tax generally refers to two kinds of taxes: (A) Taxes which employers are required to withhold from employees' paychecks; and (B) certain other payroll related taxes such as unemployment taxes and the employer's share of other payroll-related taxes, which an employer is required to pay from the employer's own pocket. In the United States, employers are required to withhold federal income tax, plus one-half of the Social Security tax, and one-half of the Medicare tax. Together, the employer's and employee's shares of the Social Security and Medicare taxes are known as the FICA tax. In some places, employers may be required to withhold state income tax, or even city income tax.
In Australia, the Payroll tax is a specific tax which is paid to the individual states and territories by employers not employees. It is not a deduction from the worker. The Australian Government itself only requires one tax withheld from paychecks, the PAYG (or pay-as-you-go) tax which includes medicare levys.
External links
From Wikipedia, the Free Encyclopedia. Original article here. Support Wikipedia by contributing or donating.
All text is available under the terms of the GNU Free Documentation License See Wikipedia Copyrights for details.