Employment Taxes
Employment taxes are taxes that employers must withhold from their employees' wages and pay on their behalf. These taxes typically include Social Security and Medicare taxes, which fund retirement and healthcare benefits for workers. Employers also contribute to these taxes, matching the amounts withheld from employees.
In addition to Social Security and Medicare taxes, employers may be responsible for federal unemployment tax (FUTA) and state unemployment taxes. These taxes help provide financial support to workers who lose their jobs. Understanding employment taxes is essential for both employers and employees to ensure compliance with tax laws.