Tax rate for payroll employees.

2008-01-15T11:53:00.000-08:00

Subject:
Tax rate for payroll employees is the same as self-employed.

You payroll employees have argued with me on this, but you're wrong.

Only half of the taxes that you pay to the government, is withheld from your paycheck.

The other half is paid by the employer.

So what is your tax rate? Twice the dollar amount that is withheld from your paycheck, which amounts to the same as the self-employed tax rate.

If that extra amount was not withheld, your hourly wage would be that much higher.

Lower taxes.

Tax rate for payroll employees.