Payroll tax

Payroll tax generally refers to two kinds of taxes: Taxes which employers are required to withhold from employees' pay, also known as withholding, Pay-As-You-Earn (PAYE) or Pay-As-You-Go (PAYG) tax; and taxes which are paid from the employer's own funds and which are directly related to employing a worker, which may be either fixed charges or proportionally linked to an employee's pay.