Employment Tax

Employment tax refers to the various taxes that employers are required to withhold and pay based on their employees' earnings. This includes Social Security and Medicare taxes, withheld federal and state income taxes, and unemployment taxes. Employers must report and remit these taxes to federal and state governments. Proper management of employment taxes is crucial for compliance with corporate tax law and avoids potential penalties. Ultimately, these taxes fund important social services and programs that benefit workers and the economy.