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What is federal withholding on check stub?

The term “payroll tax” can be used to describe two different types of similar taxes. The first type, known as withholding tax, is withheld from an employee’s wages by their employer. The employer then sends the withheld amount to the appropriate taxing authority. It is also referred to as a “pay-as-you-earn” tax. The second type of payroll tax is paid by the employer, from his/her own funds. The amount of payroll tax that an employer owes depends on the jurisdiction, and may be fixed or proportional to the employee’s salary.

Employers withhold payroll taxes (and income taxes) from their employee’s wages. Payroll taxes are then collected by both federal and state governments, which use the revenues to fund programs such as Social Security, Medicare, unemployment compensation, and worker’s compensation.

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