taxes

What are payroll taxes?

 

What are payroll taxes?

The Bankrate.com financial term of the day is: "payroll taxes."

When you look at your paycheck, there's that amount of money that you earned from your employer, and then that much smaller amount that you're actually taking home. Much, if not all, of the difference goes toward payroll taxes, which are taxes based on wages, tips and salaries. Part of the tax is deducted from the worker's pay and the rest is paid by the employer.

With payroll taxes, some of the money you make goes directly into government coffers.

For help making sense of your taxes, visit the Taxes section at Bankrate.com.

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