# Payroll Tax

*Taxes — Finicade finance glossary*

Payroll tax is levied on wages specifically, usually split nominally between employer and employee and earmarked for social insurance. Economists generally conclude that workers bear both halves regardless of who writes the cheque, since the employer's share depresses wages. For most households payroll tax exceeds income tax, which makes it the largest and least discussed part of the burden.

**Also known as:** employment tax, national insurance

**Related terms:** [FICA](https://finicade.com/glossary/fica), [Self-Employment Tax](https://finicade.com/glossary/self-employment-tax), [Regressive Tax](https://finicade.com/glossary/regressive-tax), [Gross Income](https://finicade.com/glossary/gross-income), [Withholding](https://finicade.com/glossary/withholding)

Source: https://finicade.com/glossary/payroll-tax