what is a difference between payroll and income taxes? payroll taxes are itemized deductions from an…

what is a difference between payroll and income taxes? payroll taxes are itemized deductions from an individuals paycheck, while income taxes are based on an individuals salary. payroll taxes are paid by individuals who have a job, while income taxes are partially funded by employers and employees. payroll taxes are taken out of an individuals salary once a year, while income taxes are paid by workers every time they get paid. payroll taxes are based on an individuals salary, while income taxes are itemized deductions from an individuals paycheck.

what is a difference between payroll and income taxes? payroll taxes are itemized deductions from an individuals paycheck, while income taxes are based on an individuals salary. payroll taxes are paid by individuals who have a job, while income taxes are partially funded by employers and employees. payroll taxes are taken out of an individuals salary once a year, while income taxes are paid by workers every time they get paid. payroll taxes are based on an individuals salary, while income taxes are itemized deductions from an individuals paycheck.

Answer

Brief Explanations:

Payroll taxes are often split between employer and employee and are related to employment - based earnings. Income taxes are based on an individual's overall income and are paid by the individual. Analyzing each option:

  • First option: Income taxes are not itemized deductions from paychecks, they are based on total income.
  • Second option: Payroll taxes are indeed paid by both employers and employees (e.g., Social Security and Medicare), while income taxes are paid by individuals based on their income. This is correct.
  • Third option: Payroll taxes are taken out every time an individual is paid, not once a year, and income taxes are usually paid annually (with withholdings throughout the year).
  • Fourth option: The description of income taxes as itemized deductions from paychecks is incorrect.

Answer:

Payroll taxes are paid by individuals who have a job, while income taxes are partially funded by employers and employees.