Final answer:
You should receive your W-2 form from your employer by January 31st. Overpayment of taxes withheld can lead to a tax refund. The employee's share of payroll taxes is 6.2% for Social Security and 1.45% for Medicare.
Step-by-step explanation:
As an employee, you should receive your W-2 form from your employer by January 31st each year. When you start a job, filing a W-4 form determines how much tax is withheld from your paycheck. This withheld amount is used to pay local, state, and federal taxes.
Any overpayment will result in a tax refund after you file your tax return, which is typically due by April 15th. Payroll taxes, such as those for Social Security and Medicare, are split between the employer and employee, with the employee's share being 6.2% for Social Security and 1.45% for Medicare. As some economists note, the employer's portion can effectively lower wages since they might pass the cost to employees. Gig economy workers or independent contractors receive a 1099 tax statement and must cover both the employee and employer side of the payroll tax.