Payroll Tax Reduction Q&A
The Trump administration has recently signaled that it’s looking at temporary reduction in payroll taxes as one way it can help support the economy through any COVID-19-releated economic slowdown. Today we take a brief look at what a payroll reduction is, how it would be implemented, and what it might do.
What are payroll taxes? Payroll taxes are taxes paid by employers and employees, primarily to cover the cost of Social Security and Medicare. Social security taxes are 12.4% of wages (up to a cap), half paid by the employer and half paid by the employee, while Medicare taxes are 2.9%, again evenly divided between employer... Read more