What is a kind of federal payroll tax?

Federal payroll taxes are taxes that employers withhold from employees' wages and are also paid by the employer. The primary types of federal payroll taxes include:

1. Social Security Tax: This tax funds the Social Security program, which provides retirement, disability, and survivor benefits. Employees and employers each pay 6.2% of the employee’s wages up to a certain limit (the wage base limit).

2. Medicare Tax: This tax helps fund the Medicare program, which provides health insurance to individuals over age 65 and some younger individuals with disabilities. Both employees and employers contribute 1.45% of all wages to Medicare. Additionally, there is an extra 0.9% Medicare tax for high-income earners.

3. Federal Unemployment Tax Act (FUTA): Employers pay this tax to support unemployment insurance programs. Employees do not pay FUTA taxes. The standard FUTA tax rate is 6% on the first $7,000 of an employee's wages, but employers may receive credits that often reduce the effective rate.

These taxes play a critical role in funding federal programs that provide financial support and healthcare to millions of Americans.