Half of payroll taxes are paid by the employer. The other half are paid by the employee.
And if the employer wasn't paying that half, they might pay at least some portion of that to the employee. And employers don't pay any payroll tax for non-employees.
This _isn't_ true at the state level, where payroll taxes may be paid by an employer and not the employee.
In the end it is a wash.
That's not true in my state.
>In the end it is a wash.
Not even close.
Show me a state that has combined (employer/employee) payroll taxes of 15.3%. What's that? No state comes anywhere close to that?
Not a wash by a long shot.
15.3% is the FICA factor (assuming not above income cap), split evenly between employer and employee. Add on top how the state, municipalities, school districts extract their payroll/income taxes, which can be 100% on employee, 50% on employee, 0% on employee, or none of the above. In Texas, it is 100% on employer. In Ohio, the split mixes and matches with some of the entities charging the employer and employee. Ergo, it's not always a 50/50 split between employee and employer.
In the end, it is a wash whether applied to employer or employee. FICA extracts the same amount, and other entities will extract their amount. Reduction by the employee or employer via credits are typically not feasible or are strongly engineered against.
Thanks, and this is my last comment on this thread. Have a good day.
> They do not pay Federal Payroll Taxes, because those are considered Federal Income Taxes. Why would they be different? Taxes come out of their paycheck, of which they get back from the government when their taxes are due.
> The point is that 61% of Americans do not contribute to the pool of money that is spent by the federal government as a result of their income (though they do pay as a result of sales and other taxes).
Payroll taxes are paid by the employer.