Payroll tax
Taxes withheld from wages to fund Social Security and Medicare. The employer portion is invisible to workers but still affects total compensation.
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Related Terms
FICA
Federal Insurance Contributions Act taxes funding Social Sec...
Social Security tax
A 12.4% payroll tax funding Social Security retirement and d...
Medicare tax
A 2.9% payroll tax funding Medicare, split between employer ...
Tax incidence
Who actually bears the economic burden of a tax, which may d...