Payroll taxes

      Every time you get your paycheck there are a bunch of taxes taken out and you may be wondering what are all these taxes for? Well you see it is by law that you have to pay the payroll taxes. It may seem unfair but you have to pay them no matter what and if you don't pay for them on time, then you now have an automatic penalty from 2 up to 10 percent. A severe penalty applies when federal income tax and Social Security taxes are not paid by the Internal Revenue Service (IRS). The IRS is the revenue service of the United States government. In the United States government there are 2 types of taxes. One type are the taxes you must pay that are collected and deducted form paychecks by employers and that can be called "pay-as-you-go-taxes". The other type is the kind of payroll tax that refers to the taxes on employers are required to pay their employees.
     What kind of taxes do workers have to pay? Well all workers must pay federal, state,and local income tax. How much tax that is deducted is determined by the employee on his or her tax status on IRS Form W-4. Now here's the thing income taxes are not final taxes, they are more like prepayments. You can get your money refunded by the state and federal government depending on the worker's tax bracket and deductions. It is possible for a worker to have more income tax than they have had deducted on their checks. Also workers must pay for insurance taxes for Medicare and Social Security. Just like income tax workers can get refunded from insurance tax if worker's portion of social insurance taxes exceed the maximum. Workers must also by for unemployment taxes that are by the state and federal government. The tax is a percentage of taxable wages with a cap and the tax rate and cap vary by each state and by the employer's industry and experience. Now last but not least workers must pay for worker compensation. Worker compensation insurance provides coverage for employees injured on the job. Employers are usually the ones who carry out this insurance and that is decided by the state.

      If there are a bunch of other taxes that are pulled out from your paycheck it is more likely that you have other types of deductions that are being taken out with each payment  like contributions, pensions (for companies that still have them) and health insurance care costs. So overall being a worker you have to pay for a bunch of taxes that takes a good amount of money out of your paycheck. Yes it is unfair but the government makes the decision not you.

Where I received my information: http://www.cnbc.com/id/49503844#.