The Internal Revenue Service, or the IRS for short, is in charge of the taxes that are paid to the government each year. They handle not only your personal taxes, but the IRS payroll taxes as well. These are the taxes that get taken out of your paycheck each time that your employer pays you. Also, as an employer, there is a portion of IRS payroll taxes that the company needs to pay as well.
There are some things that you should know about the IRS payroll taxes that get paid by both an employee and an employer. When it comes to shared responsibility, there’s the FICA tax. This is a tax that is a mixture of Medicare taxes and social security taxes. These are a set rate that both of you share. You each pay 6.2% for social security and 1.45% for Medicare. There is no negotiation for how much money is paid. These are set rates and can’t be changed. Thus, the more money that an employee makes, the more money gets paid in IRS payroll taxes.