Payroll tax means your employer withholds part of your pay from each of your paychecks - the withheld amount is to pay your Federal, Medicare, Social Security, and State (if applicable) taxes. This way the employee is steadily paying their taxes throughout the course of the year, rather than having to pay a huge amount at the end of the year.
In the case of Trump's payroll tax cuts - it's limited to cutting Social Security and Medicare (not Federal and of course not State).
This is incorrect. You are describing tax withholding. “Payroll tax” refers to the combination of social security and Medicare taxes. These are regressive taxes which Democrats are supposed to be against. But just watch how much they whine about this.
Can someone explain payroll tax to those that are self employed? Is it the same thing as federal income tax or something different?
Payroll tax means your employer withholds part of your pay from each of your paychecks - the withheld amount is to pay your Federal, Medicare, Social Security, and State (if applicable) taxes. This way the employee is steadily paying their taxes throughout the course of the year, rather than having to pay a huge amount at the end of the year.
In the case of Trump's payroll tax cuts - it's limited to cutting Social Security and Medicare (not Federal and of course not State).
This is incorrect. You are describing tax withholding. “Payroll tax” refers to the combination of social security and Medicare taxes. These are regressive taxes which Democrats are supposed to be against. But just watch how much they whine about this.