What Is The Payroll Tax. Federal payroll taxes are deducted directly from the employee's earnings and paid to the internal revenue service (irs). The day you hire your first employee, you become responsible for payroll tax.

The payroll tax is the tax taken out from an employee's not everybody is eligible for the payroll tax suspension though.

If you're asking because of the current payroll tax holiday fuss, what that is referring to is only the employee share of the social security portion of fica tax, which is 6.2% of. Payroll taxes are the taxes used to fund programs like social security, medicare, and unemployment insurance. Whereas income taxes go to a general government fund and after withholding both taxes, you must deposit and report them to the irs. Meaning of payroll tax in english. If you're asking because of the current payroll tax holiday fuss, what that is referring to is only the employee share of the social security portion of fica tax, which is 6.2% of. Any tax that is based on employees' pay, and is either paid by an employer or partly taken by an…. Employers are also often subject to these types of taxes. Payroll tax is a portion of an employee's wages that is withheld for the purpose of complying with tax laws and contributing to social security and payroll taxes exist in most of the countries. Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes help fund social security programs, such as unemployment insurance and also supports medicare. Payroll tax refers to various taxes that are paid, or withheld and remitted, by employers on wages that they pay to employees.