Question

What is the difference between payroll and income taxes?

Answer 1

The difference between payroll and income taxes is based on who pays it.

Both the payroll taxes and income taxes are based on the employee's wages or salary, but the difference is on who pays it. A payroll tax is paid at least or partly by the employer and the employee equally. It consist of; medical care taxes, unemployment taxes, and the social security taxes where both the employer and the employee contribute towards the tax. While employees pay income taxes where the employee pays the whole tax amount which consists of taxes that the employees pay for the location where one stays, the state tax paid to the State and the federal tax for the government.