Why Do Employees Need Payroll Taxes?

Business taxes can have a huge impact on the profitability of businesses and the amount of business investment. Taxation is a very important factor in the financial investment decision-making process because a lower tax burden allows the company to lower prices or generate higher revenue, which can then be paid out in wages, salaries and/or dividends. Business taxes include, Federal Income Tax; a tax levied by a national government on annual income, Payroll Tax; a tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee, Unemployment Tax; a federal tax that is allocated to unemployment agencies to fund unemployment assistance for laid-off workers, and Sales Tax; a tax imposed by the government at the point of sale on retail goods and services. Sales tax is based on a percentage of the selling prices of the goods and services. Consumers pay sales taxes, but effectively, business pay them since the tax increases consumer’s costs and causes them to buy less.

The Nunavut payroll tax is withheld from employee’s remuneration in Nunavut (regardless of province of residence or province of employment), includes all salaries, wages, taxable benefits, and allowances. However employees annually remuneration more than $5000 while working in Nunavut, that subject to 2% payroll tax. If employee has more working hours in Nunavut than other place of employment, all employee’s income is subject to the 2% payroll tax.

The FUTA tax for 2013 is based on 6.2 percent of each employee's wages up to $10,000.

Payroll Taxes FICA Taxes Payable - OASDI FICA Taxes Payable - HI FUTA Taxes Payable SUTA Taxes Payable

The American Revolution began when all of the laws and taxes were being passed on to the Americans. The Americans eventually fought for and won their independence by rebelling against the British Parliament. Britain's laws made for the Americans were only an advantage to the British, which was unfair.

Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.

The employer must provide the employee their W-2 form by the deadline set by the IRS. Although W-2 Forms have traditionally been filled out on paper, and many people consult tax specialists to make sure everything is correct and that they're getting the highest possible deductions. Components of the W-2 Form Chances are you've been issued a W-2 Form at some point in your life. W-2 Forms are divided into state and federal sections, since employees must file taxes on both levels. The fields on a W-2 Form provide room for all types of income. There is a box that states the total amount of money the employee made from that employer in the year in question, which is the same for federal and state. Contracted employees must fill out a W-9 Form prior to work, and they are given a 1099 Form by the company for which they provided service, but only if they completed $600 worth of work or

The IRS requires employers to report wage and salary information for employees on the W-2 form. The W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return. To insure you have it in

When you start working you will be given a Tax Code that will indicate to your employer how much tax you should be pay. Taxes are compulsory. A part of each person’s earnings is collected by the government, and then used to pay for the things that we need as a country, such as hospitals, roads, schools and defences. Each year you will receive a P60 form, which will show how much you have earned, and how much tax you have paid for that year. When you leave a job your employer must give you a P45 form, which you must give to your new employer.

What is wage discrimination? Wage discrimination (also known as compensation or Pay discrimination) is “when employees performing otherwise substantially equal work do not receive the same pay, or remuneration, for their effort” ("Compensation Discrimination"). This type of discrimination can happen at the same time as other types of discrimination, but the most common kinds are gender and racial. Racial wage discrimination has mainly been eradicated due to how many civil rights laws have been passed. Gender wage discrimination, however, is still quite prevalent in today’s culture.

As an employee, your employer is obliged by law to take off Income Tax and National Insurance contributions from your salary or wages before paying them to you. You're also entitled to all minimum legal employment rights including:

each year (depending on the wage cap), your employer will no longer need to pay

To fund these programs, individuals and employers are liable for FICO taxes. Both parties are taxed at a rate of 6.2% on income under $118,500 and an additional 1.45% tax on all income for Medicare. Social Security has been a debated issue in American politics as the life

The top 1 percent of the wealthiest people in the U.S. pay a total of over 40 percent of all federal income taxes, which is more than the entire bottom 95 percent of all tax payers. Government programs are funded through Social Insurance Taxes that are the fastest growing source of federal income though it’s actually counted separately in special trust funds by the Treasury. Both federal and state governments combine these taxes that are used to pay for social programs such as social security, Medicare, and unemployment services. This type of taxation is a regressive tax, since lower income people end up paying more from their income than those with a higher income. Another federal tax is the excise tax, better considered a luxury tax for non-necessities, which include things like liquor, cigarettes, gas, and highways. Taxes that are imposed on imported goods so that there’s less foreign competition on the domestic market are called customs duties.

The Federal Government relies predominately on the individual income tax, and federal income tax makes up more than 50 percent of the federal government’s revenue. Income taxes are paid by all those who earn income (Mikesell, 2011). It is essentially a bill from the federal and state governments for individual earnings through salaries and investment profits. Income tax is considered a progressive tax because the individual's financial obligation rises with the level of reportable income (Mikesell, 2011). Although income tax is the one of the most effective ways of raising revenue for the government, it is also one of the most controversial.