Payroll taxes are the taxes that employers are responsible for paying on behalf of their employees. These taxes include federal income tax, Social Security and Medicare taxes, as well as any state or local taxes required in a certain area. Calculating payroll taxes is an important task for every employer, as failure to pay them can have serious consequences. In order to accurately calculate these taxes, employers must first calculate each employee’s gross wages for each pay period, then subtract any applicable deductions, such as retirement contributions. Next, employers will need to apply the relevant tax rates to the employee’s taxable income in order to determine the exact amount of payroll taxes due for each employee. Finally, employers must keep records of all payroll-related payments and withholdings. By following this process, employers can ensure accurate and timely payments of payroll taxes on behalf of their employees.