Final answer:
Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff. These taxes are classified as current liabilities and are assessed by the federal government, states, and cities. They can include deductions from an employee's wages and taxes paid by the employer based on the employee's wages.
Step-by-step explanation:
Payroll taxes are taxes that employers are required to pay when they pay salaries to their staff. These taxes are classified as current liabilities because they must be paid in the very near term. Employers who do not compute correctly or remit promptly these amounts face stiff fines and penalties.
In the United States, payroll taxes are assessed by the federal government, states, and cities. They are imposed on employers and employees and are collected and paid to the taxing jurisdiction by the employers.
These taxes can include deductions from an employee's wages, such as income tax and social security contributions, as well as taxes paid by the employer based on the employee's wages, which usually cover funding of the social security system and other insurance programs.