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In reply to the discussion: Sanders Endorses Small Tax Hike On All To Fund Family Leave [View all]Thinkingabout
(30,058 posts)the employer.
On Form 941 which is filed by employer contains the following information about payroll tax, it is income tax:
Line 3 Federal income tax withheld from wages, tips and other compensation.
On this line the amount of money withheld from the employees check and it is not matched by the employer.
There is not a box as in 5a through 5d where there are two columns. These columns has the FICA and Medicare, one is from the employee and the other column is from the employer.
Federal income tax is one part of payroll tax and FICA and Medicare is also a part of payroll income taxes.
If Sanders said it would be a .2% increase in payroll tax then it will be included on line 3 of the Form 941 and not on lines 5a to 5d. This will be an increase on everyone who receives a paycheck, those who have capital gains and dividends will not be paying these taxes, capital gains and dividends are not classified as income. If Sanders is indicating this .2% is matched by the employer he is wrong.