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.
Comment on How Long It Takes the Largest Companies in America to Make One Employee's Average Annual Salary
Kaefor@lemmy.ca 10 months agoThey 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).
betz24@lemmynsfw.com 10 months ago
Blackhole@sh.itjust.works 10 months ago
Companies pay tax on employees as well.