Payroll Tax : Employee

The Payroll tax can be simply defined as the tax based upon the salary level of the employees. Generally the Government collects such type of taxes from the employee.

The rate of taxation may be fixed here or may vary in proportationate to sum of the salary

The practices of the pay roll taxes differ from country to country, which are as follows: In the United Kingdom the Income tax for the employees is the part of the payroll tax.

In the United States, the practice of federal income tax comes under the pay roll tax net.

The payroll tax in Australia is paid by the employer to the Government in Australia.