Final answer:
The employer-only taxes are Federal unemployment and State unemployment taxes. Federal withholding taxes and County income taxes are deducted from an employee's wages. Social security tax, which is regressive, is also paid by the employer based on employee wages.
Step-by-step explanation:
The taxes that are normally employer only are:
- Federal unemployment taxes
- State unemployment taxes
These taxes are paid by the employer and are not withheld from the employee's wages. In contrast, Federal withholding taxes and County income taxes are typically deducted from an employee's wage and thus are not exclusive to the employer. When an individual owns a corporation with them as the sole employee, they must pay taxes both as an employer and as an employee. These include income tax, and depending on the structure of the corporation, employment taxes and other contributions toward social security and Medicare. As for self-employment and unincorporated businesses, the individual must pay self-employment taxes, which include contributions to social security and Medicare.
The social security tax is set at 6.2% on an employee's income up to a certain threshold ($113,000 as of this context). This type of tax is considered to be regressive since the percentage stays the same regardless of income level, but only up to the threshold, meaning higher income earners pay a smaller proportion of their total income towards this tax.