Final answer:
The three-way partnership consists of the employer, employee, and government. The employer pays wages and a portion of payroll taxes, while employees receive wages with part of their taxes deducted. Although employees see only part of the taxes deducted, the employer's share may effectively reduce the employees' wages.
Step-by-step explanation:
The three-way partnership that keeps your paychecks coming every month includes the employer, the employee, and the government. In this relationship, the employer provides the job and pays wages to the employee, withholds payroll taxes, and pays their portion of taxes as well. The employee provides their labor and receives a paycheck, from which certain taxes like Social Security and Medicare are deducted. The government plays a role by mandating these tax contributions, which are split between employers and employees, to fund various government programs. Despite the employee seeing only a portion of these taxes deducted from their paycheck, it is often pointed out that employers might offset their tax contributions by offering lower wages, suggesting that in effect, employees may bear the full brunt of these taxes.