cutting payroll taxes

[Alan Jacobson]

Social Security and Medicare payroll taxes are split between the worker and
the employer. Workers pay FICA (Federal Insurance Contributions Act, for you
trivia buffs)=6.2%, capping off at $87,000 (a regressivity in the FICA tax),
Medicare 1.45% at any salary amount. Employers pay 6.2/1.45 as well.

This is one of the reasons independent contractor use has mushroomed so
much; since they are not employees, there is no obligion on the part of the
employers to pay their share of the employment taxes--the IC has to pay both
halves through the year and then get a deduction for 1/2 of them come tax
time.


> Note also that payroll taxes come from workers' salaries, not employers'
profits,

snip

Alan Jacobson