What are employment taxes?
There are four separate employment taxes imposed by the Internal Revenue Code:
- Federal Insurance Contributions Act (FICA) – Internal Revenue Code §3101 through §3128. It is imposed on both the employer and employee and collected by the employer.
- Federal Unemployment Tax Act (FUTA) – Internal Revenue Code § 3301 through § 3311. It is imposed on the employer.
- Collection of Income Tax at Source (Federal Income Tax Withheld) – Internal Revenue Code § 3401 through § 3406. It is imposed on the employee but collected by the employer.
- Railroad Retirement Tax Act (RRTA) – Internal Revenue Code § 3201, though similar to FICA, it is for railroad employees.