The payroll guide: what payroll taxes are paid by employers

"Who is FICA? And Why East he socket all of My money?" — Rachael Green And each beginner look has their First of all paycheck.

Turns out FICA is not it A guys; It is THE . And everyone WHO won A paycheck, if through wages, salary, Or advice (Yes, advice count Also) contributes A portion of their pay has FICA has funds federal social programs. East he A total disappointment has not receive that before tax total? Of course. But taxes are just part of having A job In America, SO pay We it is necessary.

Socket on. Aren't they You curious about exactly Or your hard earned money East going And WHO East responsible For paid For What ? We figurative as a lot. SO were going has slice through THE confusion And TO DO he as easy as pie. And Speaking of pie…

What are pay taxes ?

Think of your paycheck as A giant pizza. Pay taxes are basically A slice of your paycheck together next to For THE government. Taken as A percentage of your earnings, This money go has funds things as Social Security, health insurance, And unemployment benefits: you know, those security nets We all hope We Never need, but Of course are thrilled they are there When We do.

NOW, employees And employers share THE burden When he come has Taxes. Employers are on THE hook For a few, employees are on THE hook For others, And a few taxes require A slice of both pies. Although most of We would be prefer has keep THE pie all has ourselves, sharing East about more that kindness, It is THE the law—so We could as GOOD learn how has flat he out correctly.

What is this THE main difference between employer And employee pay taxes ?

Employers And employees share THE burden of certain taxes And agreement with others on their own. THE main difference East how they are collected.

Employee pay taxes are basically slices that employers take Since your paycheck pizza (through direct deductions) Before It is book has You. This pay For programs as Social Security, health insurance, And others (depending on on Or You live).

THE GOOD news East that This East A sharing burden between employers And employees. SO, When employers deliver those employee pay slices (taxes) has THE government, they to have has flat out additional slices of their own pie Also.

Pay taxes that both employers And employees pay

You are probably wondering What Exactly your tax dollars are paid For, And Well Named SO. Let's go to start by breakup down A couple of taxes that employers And employees handle together, both of which autumn below THE umbrella of OUR favorite guys: FICA.

Both employers And employees contribute also has taxes below THE Federal Insurance Contributions Act (FCIA), proof THE following federal programs:

Social security tax

Social Security tax East basically A financial security net For retired Americans. He funds things as retirement, disability, survivor benefits, And additional security income For eligible Americans.

Health Insurance tax

As people get older, health becomes Really important, And Health Insurance makes Of course the elderly can get THE medical care they need. It is A path has support them during A time When health needs often increase.

THE truth East, No A East immune has aging Or disease, And these programs provide THE financial support necessary has get through a few of the life the hardest moments. SO, as a lot as marry as THE entire pizza, It is pretty hard has argue with that.

Pay taxes that are paid by employers

When he come has pay Taxes, employers to have THE financial responsibility has chip In And support THE community, ensure THE following vital programs keep rolling.

Federal unemployment taxes (FUTA)

This tax East basically A form of insurance that help support employees WHO become unemployed through No mistake of their own. Employers typically to have has pay A 6% FUTA on THE First of all $7,000 of each employees wages, but You can get A tax credit up has 5.4% if You pay on time. SO he certainly pay has be organized!

State unemployment taxes

On THE State level, employers Also chip In For unemployment benefits has ensure financial assistance East available has workers (In their State) When necessary.

Any of them local taxes

Depending, depending on Or You live, there could be A little additional taxes For employers has think about. Local taxes funds programs And services (as education And garbage collection) RIGHT In your neighborhood, giving companies A chance has give back has THE community that supports them.

These taxes are A path has actively contribute has THE well-being of your employees And THE local community, create A positive impact Or You work And live.

Pay taxes that are paid by employees

We Already know that FICA takes A slice Since everyone paycheck (has pay For Health Insurance And Social Security). ...