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Cut down on employment taxes I haven't been able to figure out why employment taxes are paid by the employer and not shown to the employee as yet another deduc
by kspaans 10y ago
Cut down on employment taxes
I haven't been able to figure out why employment taxes are paid by the employer and not shown to the employee as yet another deduction on their paycheque. Is it because most employment taxes are collected by local governments who don't have power to impose "income taxes"? Is it because it's politically easier to hide the tax from employees so that they don't realize they are paying it?
- molsongolden 10y agoIn the US they are split 50/50 between the employer and the employee and go to the Federal government. If one is a contractor or unincorporated small business then they see 100% of the payroll tax as a self-employment tax.