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Payroll tax generally refers to a tax which employers are required to withhold from employees' paychecks. In the United States, employers are required to withhold federal income tax, Social Security tax, and Medicare tax. Together, the Social Security and Medicare taxes are known as the FICA tax. In some places, employers may be required to withhold state income tax, or even city income tax.

In Australia, the Payroll tax is a specific tax which is paid to the individual states and territories. The Australian Government itself requires another tax withheld from paychecks, the PAYG (or pay-as-you-go) tax.

External links

• What are Payroll Taxes?
• Payroll tax in Australia

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