Payroll Tax

What Does It Mean?
What Does Payroll Tax Mean?
Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax.
Investopedia Says
Investopedia explains Payroll Tax
Governments use revenues from payroll taxes to fund such programs as Social Security, healthcare, unemployment compensation, worker's compensation and sometimes local governments even require a small tax to maintain and improve local transportation. 

On an employee pay stub, payroll taxes deducted are likely to be itemized.

 
Related Links
Get a new investing term in your inbox each day!
- join our Term of the Day!
Sponsored Links
MARKETPLACE
TRADING CENTER
CURRENT HIGH YIELD SAVINGS RATES
Type
Overnight avgs
Rate data provided by
Bankrate.com
add investopedia foot
www.investopedia.com