Payroll Tax Rates
What is Payroll Tax Rates?
Employee payroll taxes refer to the reductions from an employee's wages that include:
- Medicare Tax
- Social Security Tax
- Federal Income Tax
- And State Income Tax.
For employers, the payroll taxes are
For tax rates within payrolls, it keeps on changing from year to year basis by IRS Internal Revenue Service US Government.
Therefore, employers and Employees are suggested to follow the IRS official website for such withholdings/ payroll tax deductions and their rates.
Payroll tax rates as of 2020
- For Medicare, both the employer as well as the employee pays - 1.45%
- Social Security for both employee and employer is equal to - 6.2%
- The employer only pays federal Unemployment Tax, and that is equal to - 6%
- State Unemployment taxes vary from state to state
Related: Federal Income Tax (FIT), Payroll, Payroll Software, Payroll Activities, Payroll Service, Employer Payroll Taxes, CPP