Employer Payroll Tax Calculation is the process of calculating the amount of taxes that your business is required to pay on behalf of your employees. This includes federal withholding tax, Social Security and Medicare taxes, and any other applicable state or local taxes. It’s important to get this calculation right – not only for the sake of compliance but also to ensure you are providing your employees with their full share of wages. By taking the time to properly calculate payroll taxes, you can save yourself from major headaches down the line – and give your employees peace of mind.