Oh got it, if it is a W2 job then in addition to the 40% paid by the employee, the employer needs to pay 7.5% to the government in addition to what the employer

Oh got it, if it is a W2 job then in addition to the 40% paid by the employee, the employer needs to pay 7.5% to the government in addition to what the employer pays the employee. Most companies are paying people W2 so that is mandatory, but a few are paying them 1099 so it is not required in that case to pay that 7.5%. And also for big corporations employers will pay health insurance benefits ranging 10k-20k per year per employee. But that isn't exactly as mandatory as the 7.5% tax I mentioned above. But for software engineers and white collar workers, that 10-20k is basically mandatory de facto, not but not de jure.