Skip to main content
Back to Category

Payroll tax


A payroll tax is a form of tax an employer pays to their state, local, and federal government based on a percentage of their overall employee pay. On the national level, employers generally make withholdings for  federal income taxes, federal unemployment taxes, and social security and medicare taxes, each at a different tax rate. These payroll tax deductions must be reported on the employer’s federal tax return.

Both employer and employee are required to dedicate a portion of their federal payroll taxes to the Federal Insurance Contributions Act (FICA) tax, which supports the Social Security Administration. This also applies to self-employed workers, who are responsible for both the employer and employee portions of the tax under the Self-Employment Contributions Act (SECA).

Ascentis' powerful payroll software can help you manage all your payroll tax compliance needs.


Looking for HR tools and resources?

Streamline your processes with Ascentis

Learn More

Other terms:

Fair Labor Standards Act (FLSA)


The Fair Labor Standards Act (FLSA) is a federal labor law t... See more

Talent management


Talent management, also referred to as human resources manag... See more

Time clock software


In the recent past, many organizations required their employ... See more

Sign up for a free demo today