Employer Payroll Taxes

What are Employer Payroll Taxes?

Employer payroll taxes are part of payroll taxes and are taxes levied by government on an employer which are directly related to the size of the wages and salary outlay.

As the following diagram demonstrates, employer payroll taxes are part of the total payroll cost and are paid in addition to the gross pay of the employee.

Employer Payroll Taxes
Employer Payroll
Employee Gross Pay Employer tax

The employer portion of payroll taxes normally fund insurance and social security systems within the country concerned.

For further information see the Wikipedia employer payroll taxation definition.

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Last modified October 18th, 2018 by Team

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