Final answer:
Employer tax or levy health funding implications on payroll encompass deductions from employee wages and employer taxes, which contribute to social security and insurance programs. Proposed changes to payroll tax structures could result in removing income caps for taxation or shifting to personal savings systems for healthcare. Reporting these taxes is stringent, typically requiring quarterly and annual submissions by employers.
Step-by-step explanation:
The implications of employer tax or levy health funding on payroll include mandatory deductions from an employee's wages as well as additional taxes paid by the employer. These are designed to contribute to social security and insurance programs such as unemployment and disability benefits. Changes to payroll taxes can significantly affect both the employer's bottom line and the employee's net income.
Current discussions in the political and economic spheres regarding payroll taxes involve proposals that could introduce significant changes to the system. One such suggestion includes removing the cap on wages subject to the payroll tax, meaning individuals with higher incomes would contribute more to the tax system. Other proposals speculate about overhauling Social Security and Medicare into systems of personal savings accounts, which could dramatically alter the future mechanics of payroll taxation and benefits for healthcare in retirement.
Reporting requirements for payroll taxes are quite rigorous, with most jurisdictions requiring quarterly and annual reporting by employers, and electronic reporting is often mandatory.