Payroll taxes are taxes that employees and employers must pay based on wages and tips earned and salaries paid to employees.
The federal government levies payroll taxes on wages and self-employment income and uses the revenue to fund Social Security, Medicare, and other social insurance programs.
Formula to calculate payroll taxes.
Example:
Calculate an employee’s payroll taxes if her gross pay is $120 and the charge for medicare is $ 20, while that of social security is $ 52.
Therefore, her payroll taxes are worth $ 72.
