Module 1: Payroll Taxes and Federal Income Tax Withholding
See Also
Oregon Department of Revenue : Penalties and interest for personal income tax : Individuals : State of OregonWithholding Tax 101 (or, ‘Why Is My Pay Less Than What My Client Said It Would Be?’) | Taxumo - File & Pay Your Taxes in Minutes!What Is a Tax Withholding?Payroll and Self-Employment Tax InformationPage 3 of 9
Employers withhold taxes from employees' pay.
- Gross pay is the amount the employee earns.
- Net pay, or take-home pay, is the amount the employee receives after deductions.
The difference between gross pay and net pay is:
- Social Security taxes
- Medicare taxes
- income tax withheld
- other amounts withheld
Employers send the withheld taxes to the federal government.
