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Key Takeaways
- Payroll taxes are withheld from every employee's salary and remitted to the federal government.
- In the U.S., payroll taxes are used to fund Social Security and Medicare.
- Both employers and employees have to pay an equivalent share of Social Security and Medicare taxes.
- Payroll taxes are used to pay for government spending, specific programs, Social Security, Medicare, local infrastructure, and more.
www.investopedia.com/terms/p/payrolltax.asp- People also ask
How to Read a Pay Stub - Investopedia
A pay stub is a document that summarizes how your total earnings during a specific pay period were distributed. A pay stub is generally broken down into three main sections: how much you are being paid, the taxes you are paying, and any other deductionsthat are being made. The amount you are being paid … See more
Pay stubs may seem frivolous. However, they do serve a much-needed purpose. The pay stub is important because it serves as a point of reference and accountability for … See more
In addition to basic personal information such as your name, Social Security number, and potential employee ID, there is a lot of information displayed on a pay stub. Below, we … See more
If you don’t have your pay stub, they are generally easily accessible. In most cases, you can retrieve them digitally by logging into the company payroll website. You were likely given access to it along with login information when you were initially hired. If you are … See more
Earning and net pay are not the same. Earnings refer to the amount of money you made in total. Net pay is the amount of money you “take … See more
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