How much do employers pay in payroll taxes?


Quick Answer

Payroll taxes are shared by employer and employee, with the employer's portion amounting to a total of 7.65 percent for the 2013 tax year. Payroll taxes are made up of Social Security and Medicare taxes.

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Full Answer

According to the IRS, employees pay these taxes while they work and then receive the benefits of these programs when they retire. Self-employed persons pay both the employee and the employer portions of the payroll tax. This is termed self-employment taxes and amounts to 12.4 percent for the Social Security tax and 2.9 percent for the Medicare tax for the 2013 tax year, according to Turbo Tax.

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