Kareleo Business Centre

There are three types of payroll taxes:

• Income taxes: Withhold the proper amount of tax income from the salary of each employee throughout the year.

• Social Security tax and Medicare or “FICA” Hold the FICA tax you must pay each employee his salary and match that amount.

• Federal Unemployment Tax or “FUTA” This tax goes to the unemployment insurance system, and is paid entirely by the employer. Employees must not remove any of FUTA.

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