Payroll tax意思

Payroll tax is a type of tax that is deducted from an employee's wages and paid to the government by the employer. It is a tax that is imposed on employers, but it is typically collected from employees as a percentage of their wages.

In the United States, payroll taxes are used to fund Social Security and Medicare, which are federal programs that provide retirement benefits, disability benefits, and healthcare for the elderly and the disabled. The two main payroll taxes are the Social Security tax and the Medicare tax.

The Social Security tax is currently 6.2% of an employee's wages, up to a certain maximum amount called the taxable wage base. For 2023, the taxable wage base is $160,200. This means that the maximum Social Security tax an employee can pay is $10,041.60 per year ($160,200 x 6.2%). Employers also pay a matching 6.2% of the employee's wages, up to the taxable wage base.

The Medicare tax is currently 1.45% of an employee's wages, with no maximum wage base. Employers also pay a matching 1.45% of the employee's wages.

In addition to these taxes, there are also state and local payroll taxes, which vary by location. Some states and cities have their own payroll taxes, which are used to fund various government programs and services.

Payroll taxes are an important source of revenue for the government, and they are used to provide benefits to millions of Americans. However, they can also be a burden on employers and employees, as they reduce the amount of money available for wages and profits.