Employer payroll taxes are the contributions paid by the employer to local, state, and federal taxes in order to fund public services. The estimated employer payroll tax is the amount of money a business will pay in taxes for a given period. This estimate should be based on the size and type of employees within the organization, as well as the applicable tax rate. It’s important that employers accurately estimate their payroll taxes to ensure they are compliant with local, state, and federal regulations. Taking the time to understand these obligations helps businesses protect themselves from hefty financial penalties and stays in good standing with relevant authorities.