With each payroll, you and your employees have to pay taxes. You collect and remit the money, butwhat are payroll taxesused for? How does the government use the money? Staying informed on where your money is going is important.

What is the purpose of payroll taxes?

Your remitted Social Security tax is sent to the Social Security Trust Funds. Social Security taxes fund benefits for individuals who are disabled, retired, or are children of deceased workers. Medicare taxes are applied to the Hospital Insurance Trust Fund. This trust fund helps pay for Medicare Part A and the administration of the Medicare Program.

What do payroll taxes help fund?

Federal payroll taxes in the U.S. cover the Medicare and Social Security contributions. As an employer, you withhold 7.65% of your employees’ wages per paycheck, and you match 7.65% of each employee’s wages. You must also withhold federal income taxes which the U.S. Treasury then disburses to government agencies.

A variety of payroll taxes impact the amount of your employees’net pay, but what do payroll taxes fund? Use the sections below to discover where payroll taxes go.

Federal income tax

You only withhold联邦所得税from employee wages. Your business does not pay federal income tax. You determine how much to withhold based on income tax tables, each employee’s earnings, and information entered on Form W-4.

Federal income taxes go to the U.S. Treasury General Fund. The Treasury then disburses money to government agencies based on the federal budget.

The White House has anOnline Tax Receiptthat shows what percentage of income tax goes to each federal program or service. You can even enter the amount of income tax that you paid to see how much money went to each program.

雇员工资中扣留的联邦所得税在提交1040表格时将其归功于他们的工资。

State income tax

Many states have astate income tax。只有员工缴纳州所得税。

States use the income tax to fund state programs, such as education, corrections, and public assistance. State income taxes are disbursed based on each state’s budget.

Social Security tax

Social Security tax由您和您的员工支付。您将从员工的工资中扣除社会保障税，您将支付相匹配的金额。

The Social Security tax you remit is sent to the Social Security Trust Funds. Social Security tax funds benefits for people who are retired, disabled, or are children of deceased workers.

Both the tax withheld from employee wages and the amount you contribute are credited toward your employees.

Medicare tax

Both you and your employees payMedicare tax。Like Social Security tax, you withhold Medicare tax from each employees’ wages, and you also pay a matching amount.

Medicare税被纳入Hospital Insurance Trust Fund。The fund helps pay for Medicare Part A and Medicare Program administration.

The tax is credited toward employees for both the employee and employer portions.

FUTA税

Only you will payFUTA税。You will not withhold any employee wages for FUTA.

FUTA税已纳入三个联邦帐户。The Employment Security Administration Account supports the administration of state unemployment insurance programs. The Extended Unemployment Compensation Account provides funds for the extended benefits programs. The Federal Unemployment Account provides loans for distressed state unemployment programs.

SUTA tax

像FUTA税一样，只有您会付款SUTA tax。Suta税不是雇员的工资。每个州都设定了自己的SUTA费率。您将向您的州机构支付处理税款的国家机构。

unemploym SUTA税收基金状态ent benefits for displaced workers.

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