As an employer, I can say these payroll taxes are quite a burden. An employee pays,say, 7% per paycheck out of his pay: the employer pays 7% x (number of employees) per paycheck and has to give the Govt. the collected money and a summary report quarterly. Heaven help you if your reporting isn't satisfactory. The paperwork alone must be very costly to the Govt as well as the employer in manhours.
As an employer, I can say these payroll taxes are quite a burden. An employee pays,say, 7% per paycheck out of his pay: the employer pays 7% x (number of employees) per paycheck and has to give the Govt. the collected money and a summary report quarterly. Heaven help you if your reporting isn't satisfactory. The paperwork alone must be very costly to the Govt as well as the employer in manhours.