employment taxes

Employment taxes are the taxes employers and employees pay based on wages. They fund Social Security, Medicare, and unemployment programs. Usually, both parties share these costs: employers withhold a portion from employees’ paychecks and also pay a matching amount. These taxes are calculated as a percentage of wages and are mandatory. Essentially, employment taxes help finance important social benefits and safety nets for workers and retirees, ensuring the sustainability of these programs. They are a routine part of employment that supports broader economic and social stability.