Payroll Tax Law

Payroll tax law refers to the regulations governing taxes that employers withhold from employees’ paychecks to fund social services, such as Social Security and Medicare. Employers are required to deduct a portion of each employee's earnings, match those amounts, and remit them to the government. These taxes help finance public programs that provide benefits to workers, retirees, and their families. Understanding payroll tax is essential for both employers and employees, as it affects take-home pay and contributes to the overall funding of vital social programs.