Calculating employee taxes is an essential process any business must undertake. It involves accurately determining payroll deductions based on each employee’s salary and deductions like social security, state and local income taxes, and other deductions. This calculation not only ensures compliance with state and federal laws but also helps employers remain accurate in their financial and tax reporting. Knowing the ins and outs of employee tax calculations can save businesses time, money, and stress while helping protect them from potential legal issues down the line.