Netlinkaccess - All about Payroll Services and Accounting
*Home>>>Payroll Tax

What's the difference between "payroll" tax and corporate or income tax?

...in other words, a C-corp will split the SS and medicare tax with the employee (within salary parameters)...what's the difference between that tax and income tax or is it all the same thing in the end?

There are 5 different categories of taxes that all business must pay if they have Employees: Federal, Social Security, Medicare, State (Local), Federal Unemployment and State Unemployment. These are Payroll Taxes, also referred to as Income taxes because they are calculated from your Salary or Wages.

Payroll Taxes consist of the employer portion of social security and medicare and federal and state unemployment taxes.

Income tax and the employee portion of social security and medicare are paid by the employee, but withheld by the employer. These are called trust fund taxes because they are withheld from the employee and paid over to the taxing authority by the employer.

The two types of taxes (withholding and payroll taxes) are combined and paid to the same agency, but a payroll tax return tells the government how to split the taxes.

Tags
　　Payroll Company 　　Employee Payroll 　　Monthly Payroll 　　Billing Payroll 　　Payroll Checks 　　Payroll Card 　　Payroll Tax 　　Payroll Accounting 　　Online Payroll 　　Adp Payroll 　　Payroll Program 　　Payroll Software
Related information
  • If i owe payroll taxes from a previous business can the irs take my wife's tax refund?

    They will probably intercept the refund and she'll have to file as injured spouse to try to claim her portion of the refund. This is also done when other debts cause refund intercept, such as...

  • Would you support a payroll tax to pay the salaries of those on parental/maturnity leave?

    Yes, I would. Shyt, everything else is taxed--why not help mothers in the labor force?!

    ...
  • What is a 940 payroll tax deposit coupon?

    Federal payroll tax obligations are payable in on of 3 ways: EFTPS: online; or At a federal bank using form 8109 -B which is a generic payment coupon for many types of tax including 940 tax;...

  • Is grouping provision for payroll tax the same as for workers compensation purpose?

    A lot of people get Withholding Tax , Income tax Instalments and State Payroll Tax confused... which are you referring to? If you are referring to State Payroll Tax, which state each each have d...

  • Is the deadline for payroll tax deposits extended another day as a result of this President Ford Holiday?

    Since no one has attempted to answer this question, I'll take a stab. Usually deadlines are extended at the IRS when the due date falls on a holiday or Sunday. Since the day of mournin...

  • What is compute sales tax and payroll tax?

    Samantha, I am a total tax nerd and here is a link to some fun ways to learn about taxes.... ...

  • Need 2007 payroll tax bracket chart for state of N.Y. and fed.?

    You can find that chart in the publication 17 for the federal, but you would need to contact your state for the other

    ...
  • Tax Rebate or just lower the percentage of payroll taxes for 6 months?

    Rebate Please If job goes south Lower taxes won't help If you got no job How you going to get lower payroll tax Just send me the $$$$$$$$$$$$$$$$$$$$$$$ Clinton 08

    ...
    • 　

    Categories--Copyright/IP Policy--Contact Webmaster