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[-] Kaefor@lemmy.ca 3 points 11 months ago* (last edited 11 months ago)

They pay tax after paying you.

Payroll is an expense that gets deducted from revenue before calculating taxes.

They pay employer contributions/insurance/deductions but you pay the tax on it. It's to avoid double taxing that money (corp pays tax and you pay tax).

Edit for replies: yes, they pay payroll tax but that is based on payroll, and is a percentage of payroll. The other replies were referring to bottom line tax and revenue/profit. Maybe I should have been clearer but I was trying to keep it easy and not muddy the waters.

[-] Blackhole@sh.itjust.works 1 points 11 months ago

Companies pay tax on employees as well.

[-] betz24@lemmynsfw.com 0 points 11 months ago

I have run payroll myself. When you run payroll, a company pays taxes to the government. Every paycheck. There are taxes the company is liable for and not employees.

this post was submitted on 15 Nov 2023
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