Employers are responsible for paying various payroll taxes, including:
- Social Security and Medicare taxes : The Social Security tax rate is 12.4%, with half paid by the employee and the other half by the employer. The Medicare tax rate is 2.9%, paid equally by both employers and employees
- Federal Unemployment Tax Act (FUTA) tax : This tax is paid only by the employer and is not deducted from the employee's wages. The tax rate and taxable wage limit for FUTA are determined annually
- State Unemployment Insurance (UI) tax : Employers are required to pay a state UI tax, and the tax rates and taxable wages are determined annually by each individual state. New York, for example, requires all employers to pay a state UI tax, with tax rates ranging from 2.1% to 9.9% for established employers
In addition to these, employers are also responsible for withholding and depositing the employee's part of the taxes, such as federal and state income taxes, and for some taxes, paying an employer's portion
