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by bjourne 1837 days ago
Payroll tax is paid by employers on behalf of their employees. That is, it is the employees money that pays the tax - not the employers. VAT works similarly.
1 comments

There’s two halves to payroll tax. One paid by the employee that is deducted from their paycheck. The other is paid by the employer and counts as an expense against revenue.

Employees do not get to deduct the second half from their taxes. It’s considered to be paid by their employers.

(Unless you’re self employed.)

Nonetheless, it’s effectively part of the employee compensation. It goes away if the employee does.