Employment Tax Law

Employment Tax Law, particularly in the context of Payroll Tax Law, involves the rules that govern the taxes employers must withhold from their employees' wages and pay to the government. This includes federal income tax, Social Security, and Medicare taxes. Employers are responsible for calculating these amounts correctly, deducting them from employee paychecks, and remitting them to tax authorities. Non-compliance can lead to penalties and interest. Essentially, it ensures that workers contribute to social programs and that the government collects earnings for public services. Understanding these obligations is crucial for both employers and employees.