Final answer:
Office management handles sensitive employee information due to confidentiality requirements. Employees typically see a 6.2% Social Security deduction and a 1.45% Medicare deduction, with some economists suggesting that they might bear the true cost of employer contributions through lower wages. Independent contractors must pay both the employee and employer portions of the payroll taxes.
Step-by-step explanation:
Responsibilities like handling employee salary information, Social Security numbers, and employee tax information are often assigned to the office manager because they require a high level of confidentiality. Matters of payroll are sensitive and must be managed with care to ensure privacy and compliance with laws.
In terms of payroll taxes, typically the employer and the employee split the payroll taxes. An employee will see deductions from their paycheck amounting to 6.2% for Social Security, and 1.45% for Medicare. However, some economists suggest that the employer's contribution to these payroll taxes may ultimately be passed on to the employees through lower wages. Therefore, the employees might indirectly pay for the total payroll taxes.
If an individual is part of the gig economy and receives a 1099 tax statement, being classified as an independent contractor, they are responsible for the entirety of the payroll taxes, both the employee and the employer portions.