What different kinds of Taxes are cut from a Salary?

Horace Escue: Usually:Federal income taxState income taxSocial Security payroll taxMedicare payroll taxSometimes:State Disability InsuranceLocal tax...Show more

Lonnie Jehle: If you are doing a business plan, the employee withholdings are a zero-sum amount -- you withhold it from their pay and turn it over to the government -- so they don't figure significantly in your business plan or affect your profits. The expenses for payroll taxes on the other hand are important to your planning. You'll pay FICA taxes (7.65% of each employees' wages up to the SS cap and 1.45% thereafter) plus federal and state unemployment taxes and possibly state disability insurance taxes. In most states workers compensation coverage is mandatory so it should be treated as a payroll tax even though it may be purchased privately in some states....Show more