Prepare and review the monthly payroll record and calculate all types of taxes and fees applicable to each category of employees. Prepare annual payroll tax adjustments and submit them to the Tax Authority on behalf of the company Assist the company in obtaining the best benefits and legal gains for the company’s employees. Preparing and attending the tax examination for payroll tax. Defending the company in internal committees, appeal committees and before the courts when necessary. Submit a quarterly payroll return.
Payroll Tax: The Hidden Cost of Earning
Payroll tax, often overlooked by employees, is a compulsory levy imposed on both employers and employees. It’s a significant component of the overall tax burden and plays a crucial role in funding various government programs.
Breakdown of Payroll Taxes
Payroll taxes are typically divided into two primary categories:
- Employee Taxes: Deducted directly from an employee’s paycheck, these taxes fund programs like Social Security, Medicare, and federal unemployment insurance.
- Employer Taxes: Paid by employers, these taxes contribute to the same programs as employee taxes, along with additional levies for state and federal unemployment insurance.
Purpose of Payroll Taxes
The revenue generated from payroll taxes is essential for funding a wide range of government programs. These programs include:
- Social Security: Provides retirement benefits, disability income, and survivor benefits to eligible workers and their families.
- Medicare: Covers healthcare costs for the elderly and disabled.
- Unemployment Insurance: Provides temporary financial assistance to workers who lose their jobs through no fault of their own