Payroll Tax

Payroll tax pages explain taxes and tax-like payroll collections that operate through wages, compensation, and employer payroll systems. These terms are closely related to withholding but are not identical to income tax withholding.

Start Here

• FICA Tax
• Social Security Tax
• Medicare Tax
• Additional Medicare Tax
• Self-Employment Tax

What This Section Covers

• Taxes that arise from compensation and payroll reporting.
• The difference between income tax withholding and payroll tax obligations.
• Why self-employed taxpayers often have a different payment rhythm from employees.
• The difference between employee wage payroll tax and self-employment equivalents.
• Where higher-income Medicare rules become more complicated than ordinary paycheck withholding.

Best Reading Paths

• Start with FICA Tax if the reader needs the payroll-tax umbrella concept before separating Social Security and Medicare.
• Start with Social Security Tax if the question is the wage-base and Social Security side specifically.
• Start with Medicare Tax if the question is the Medicare side of paycheck tax.
• Move from Medicare Tax to Additional Medicare Tax if the issue is higher compensation or year-end Medicare reconciliation.
• Move from Self-Employment Tax to Schedule SE, then to Form 1040-ES, if the reader is self-employed and needs the annual-calculation plus pay-as-you-go path.
• Compare FICA Tax with Federal Income Tax Withholding if the reader is trying to decode a paycheck or a Form W-2.

Related Sections

• Withholding and Estimated Tax
• Tax Forms and Filing
• Business Tax

In this section

• Additional Medicare Tax
  Additional Medicare Tax is the extra Medicare-related payroll tax concept that can apply when compensation reaches the relevant threshold.
• FICA Tax
  FICA tax is the payroll tax framework that generally covers Social Security and Medicare taxes on wages.
• Medicare Tax
  Medicare tax is one of the payroll taxes generally collected on wages as part of the broader FICA framework.
• Self-Employment Tax
  Self-employment tax is the payroll-style tax burden that generally applies when a taxpayer earns net income from self-employment rather than wages.
• Social Security Tax
  Social Security tax is one of the payroll taxes generally collected on wages as part of the broader FICA structure.