Payroll taxes involve a calculation of the amount of money that employers need to collect from their employees to meet their local and federal obligations. These taxes are typically withheld from an employee’s paycheque, with the employer then responsible for submitting these payments to the appropriate government bodies in a timely manner. Employers must understand the different types of payroll taxes and how each impacts the worker, as well as the employer, in order to remain compliant with taxation laws. By understanding the nuances of taxation law and calculations, employers can ensure they are meeting all legal obligations while providing their employees with the accurate deductions and rebates due to them.