{"id":2309,"date":"2026-08-05T05:05:27","date_gmt":"2026-08-05T05:05:27","guid":{"rendered":"https:\/\/www.skizzlehr.tech\/resources\/?p=2309"},"modified":"2026-08-05T06:07:30","modified_gmt":"2026-08-05T06:07:30","slug":"what-is-payroll-tax-definition-types-and-examples","status":"publish","type":"post","link":"https:\/\/www.skizzlehr.tech\/resources\/blog\/what-is-payroll-tax-definition-types-and-examples\/","title":{"rendered":"What Is Payroll Tax? Definition, Types, and Examples Explained"},"content":{"rendered":"<p><strong><span class=\"TextRun SCXW229917023 BCX0\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW229917023 BCX0\" data-ccp-parastyle=\"heading 3\">Introduction<\/span><\/span><span class=\"EOP Selected SCXW229917023 BCX0\" data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/strong><\/p>\r\n<p><span data-contrast=\"none\">Payroll tax, in simple terms, is money taken from an employee&#8217;s wages or given by an employer based on the worker&#8217;s salary to fund specific programs like healthcare, retirement and unemployment. Employers can stay legally compliant, fund essential social programs and avoid heavy government fines by managing payroll taxes accurately through a <strong><a href=\"https:\/\/www.skizzlehr.tech\/payroll-software\/payroll-software.php\">Payroll Software solution<\/a><\/strong>. Now you might be wondering, then what is the difference between payroll tax and income tax? Well, payroll tax funds specific social insurance programs and it is split between employees and employers, while income tax is paid by individuals for general government operations.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span> <span data-contrast=\"none\">Here in this well-curated blog, we will learn about Payroll taxes, types of Payroll taxes, Payroll\u00a0tax examples.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\r\n\r\n<p>&nbsp;<\/p>\r\n\r\n<div style=\"background: #f1ecf5; border-radius: 16px; padding: 20px; margin-bottom: 20px;\">\r\n<p style=\"margin-bottom: 5px;\">Quick Answer:<\/p>\r\n<h3 style=\"margin-top: 0; margin-bottom: 20px;\">Payroll Tax at a Glance<\/h3>\r\n<div class=\"row\"><!-- Card 1 -->\r\n<div class=\"col-sm-6\" style=\"margin-bottom: 20px;\">\r\n<div style=\"background: #fff; border-radius: 8px; padding: 15px; height: 100%;\">\r\n<ul style=\"margin-bottom: 0; padding-left: 20px;\">\r\n<li>Payroll tax on employee salaries<\/li>\r\n<li>Shared by employers &amp; employees<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<!-- Card 2 -->\r\n<div class=\"col-sm-6\" style=\"margin-bottom: 20px;\">\r\n<div style=\"background: #fff; border-radius: 8px; padding: 15px; height: 100%;\">\r\n<ul style=\"margin-bottom: 0; padding-left: 20px;\">\r\n<li>Includes TDS, EPF, ESIC &amp; Professional Tax<\/li>\r\n<li>Funds social security benefits<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<!-- Card 3 -->\r\n<div class=\"col-sm-6\" style=\"margin-bottom: 20px;\">\r\n<div style=\"background: #fff; border-radius: 8px; padding: 15px; height: 100%;\">\r\n<ul style=\"margin-bottom: 0; padding-left: 20px;\">\r\n<li>Calculated every payroll cycle<\/li>\r\n<li>Ensures payroll tax compliance<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<!-- Card 4 -->\r\n<div class=\"col-sm-6\" style=\"margin-bottom: 20px;\">\r\n<div style=\"background: #fff; border-radius: 8px; padding: 15px; height: 100%;\">\r\n<ul style=\"margin-bottom: 0; padding-left: 20px;\">\r\n<li>Automates payroll tax calculation<\/li>\r\n<li>Reduces payroll errors<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<h2><strong>What Is Payroll Tax?\u00a0<\/strong><\/h2>\r\n<h3 aria-level=\"3\">Payroll Tax Definition\u00a0<\/h3>\r\n<p><span data-contrast=\"none\">Payroll tax is a tax split between employers and employees and paid directly from company funds based on staff salaries. These funds help and finance the government with social insurance programs such as healthcare and unemployment funds.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\r\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Why Payroll Taxes Matter<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\r\n<p aria-level=\"4\"><span data-contrast=\"none\">Employee benefits:\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:280,&quot;335559739&quot;:80}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Income replacement during old age or disability<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Medical coverage support<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Official proof of legal earnings\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p aria-level=\"4\"><span data-contrast=\"none\">Government-funded programs<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:280,&quot;335559739&quot;:80}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Employee\u2019s provident fund (EPF)<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Employees\u2019 state insurance (ESI)<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p aria-level=\"4\"><span data-contrast=\"none\">Business compliance<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:280,&quot;335559739&quot;:80}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Tax Deducted at Source (TDS)<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Provident Fund (PF)<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Professional Tax (PT)\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2 aria-level=\"2\"><strong>How Payroll Tax Works?\u00a0<\/strong><\/h2>\r\n<h3 aria-level=\"3\"><span data-contrast=\"none\">Payroll Tax Process Step-by-Step<\/span><\/h3>\r\n<h4 aria-level=\"3\"><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><span data-contrast=\"none\">1.Employee earns wages<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"auto\">Employees trade their time, skills and labor for money and earn wages through hourly pay, fixed salaries, or piece-rate work.\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">2.Employer calculates payroll taxes<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"auto\">Employers\u00a0determine\u00a0gross pay, withhold employee taxes according to statutory rates and tax tables and contribute matching employer contributions.<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">3.Required deductions are made<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"auto\">Required deductions are calculated by using government tax tables, employees-submitted forms or legal mandates and remitted directly to relevant authorities.<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">4.Employer contributes its share<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"auto\">The employer contributes 12% of the employee&#8217;s basic salary and dearness allowance.\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">5.Taxes are deposited with tax authorities<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"auto\">Using electronic online portals, authorized bank branches or direct source deductions, taxes are deposited with tax authorities.\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">6.Payroll tax returns are filed<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:280,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">By calculating employee withholdings, depositing the funds with the\u00a0government\u00a0and\u00a0submitting\u00a0periodic compliance forms, tax returns for payroll are filed.\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\r\n<h3><span class=\"TextRun SCXW73019866 BCX0\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW73019866 BCX0\">Simple payroll workflow diagram<\/span><\/span><span class=\"EOP Selected SCXW73019866 BCX0\" data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:0,&quot;335559731&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/h3>\r\n<p><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-2310 aligncenter\" src=\"https:\/\/www.skizzlehr.tech\/resources\/wp-content\/uploads\/2026\/08\/ChatGPT-Image-Aug-3-2026-11_20_53-AM-300x200.png\" alt=\"Simple payroll workflow diagram \" width=\"730\" height=\"486\" srcset=\"https:\/\/www.skizzlehr.tech\/resources\/wp-content\/uploads\/2026\/08\/ChatGPT-Image-Aug-3-2026-11_20_53-AM-300x200.png 300w, https:\/\/www.skizzlehr.tech\/resources\/wp-content\/uploads\/2026\/08\/ChatGPT-Image-Aug-3-2026-11_20_53-AM-1024x683.png 1024w, https:\/\/www.skizzlehr.tech\/resources\/wp-content\/uploads\/2026\/08\/ChatGPT-Image-Aug-3-2026-11_20_53-AM-768x512.png 768w, https:\/\/www.skizzlehr.tech\/resources\/wp-content\/uploads\/2026\/08\/ChatGPT-Image-Aug-3-2026-11_20_53-AM.png 1535w\" sizes=\"(max-width: 730px) 100vw, 730px\" \/><\/p>\r\n<h2 aria-level=\"2\"><strong>Types of Payroll Taxes\u00a0<\/strong><\/h2>\r\n<h4><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:0,&quot;335559731&quot;:0}\">1.<\/span><span data-contrast=\"none\">Tax Deducted\u00a0At\u00a0Source:\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">A system where the sender of payment deducts money early for a set percentage of Tax before giving money to the receiver.<\/span><\/p>\r\n<p><strong>Purpose of TDS: <\/strong>Early Tax Collection, stop tax cheating and steady cashflow<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee:<\/strong> As per tax slab<\/p>\r\n<p><strong>Employer:<\/strong> 0%<\/p>\r\n<p><strong>Self-employed:<\/strong> Income Tax\/Advanced Tax<\/p>\r\n<p><strong data-start=\"793\" data-end=\"811\">Learn more at:<\/strong> <a href=\"https:\/\/www.incometaxindia.gov.in\/tax-deductes-at-source-tds\"><strong data-start=\"812\" data-end=\"874\">Income Tax Department \u2013 Tax Deducted at Source (TDS) Guide<\/strong><\/a><\/p>\r\n<h4><span data-contrast=\"none\">2.Employee Provident Fund(EPFO): <\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">A mandatory retirement saving scheme where the employee and employer contribute a monthly percentage of worker\u2019s salary which is managed by the Employee&#8217;s provident fund organization (EPFO).<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0}\">\u00a0<\/span><\/p>\r\n<p><strong>Purpose:<\/strong> Retirement corpus, pension &amp; insurance, Emergency support<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee:<\/strong> 12%<\/p>\r\n<p><strong>Employer: <\/strong>12%<\/p>\r\n<p><strong>Self-employed:<\/strong> Optional<\/p>\r\n<p><span data-contrast=\"none\"><strong data-start=\"877\" data-end=\"895\">Learn more at:<\/strong> <a href=\"https:\/\/www.epfindia.gov.in\/site_en\/\"><strong data-start=\"896\" data-end=\"962\">Employees&#8217; Provident Fund Organisation (EPFO) Official Website<\/strong> <\/a><\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0}\">\u00a0<\/span><\/p>\r\n<h4><span data-contrast=\"none\">3.Employee\u2019s State Insurance (ESIC):<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">ESIC is a self-financing social security and health insurance program in India for the well-being of workers managed by Employees\u2019 State Insurance Corporation.<\/span><\/p>\r\n<p><strong>Purpose:<\/strong> Medical care, Sickness Cash Pay, Maternity Leave Pay, Disability &amp; Death Support<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee:<\/strong> 0.75%<\/p>\r\n<p><strong>Employer:<\/strong> 3.25%<\/p>\r\n<p><strong>Self-employed:<\/strong> Not Applicable<\/p>\r\n<p><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559731&quot;:0}\"><strong data-start=\"965\" data-end=\"983\">Learn more at:<\/strong> <a href=\"https:\/\/esic.gov.in\/\"><strong data-start=\"984\" data-end=\"1049\">Employees&#8217; State Insurance Corporation (ESIC) Official Portal<\/strong> <\/a><\/span><\/p>\r\n<h4><span data-contrast=\"none\">4.Professional Tax: <\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">Professional Tax is a direct tax charged by the government of India on income from employment, trade or professions.<\/span><\/p>\r\n<p><strong>Purpose:<\/strong> Fund Local Public Infrastructure, Welfare Schemes, Administrative Services<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee:<\/strong> State-specific<\/p>\r\n<p><strong>Employer:<\/strong> 0%<\/p>\r\n<p><strong>Self-employed:<\/strong> State-specific (where applicable)<\/p>\r\n<p><strong data-start=\"1052\" data-end=\"1070\">Learn more at:<\/strong> <a href=\"https:\/\/www.incometaxindia.gov.in\/\"><strong data-start=\"1071\" data-end=\"1105\">Income Tax Department of India<\/strong><\/a><\/p>\r\n<h4><span data-contrast=\"none\">5.Labour Welfare Fund: <\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">LWF is a state-managed financial pool to improve working and living conditions of workers funded by employees, employers and sometimes state governments with fixed rupee amounts.<\/span><\/p>\r\n<p><strong>Purpose:<\/strong> Healthcare, Education, Housing &amp; Social Security<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee: <\/strong>State-specific<\/p>\r\n<p><strong>Employer:<\/strong> State-specific<\/p>\r\n<p><strong>Self-employed:<\/strong> Not Applicable<\/p>\r\n<p><strong data-start=\"1108\" data-end=\"1126\">Learn more at:<\/strong> <a href=\"https:\/\/www.labour.gov.in\/\"><strong data-start=\"1127\" data-end=\"1183\">Ministry of Labour &amp; Employment, Government of India<\/strong><\/a><\/p>\r\n<h4><span data-contrast=\"none\">6.Gratuity: <\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:320,&quot;335559739&quot;:80,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\r\n<p><span data-contrast=\"none\">Employers pay a financial lump-sum benefit to an employee as a token of appreciation for long-term service.\u00a0<\/span><\/p>\r\n<p><strong>Purpose:<\/strong> Financial Security, Reward for continuous, dedicated service<\/p>\r\n<p><strong>Who Pays:<\/strong><\/p>\r\n<p><strong>Employee:<\/strong> 0%<\/p>\r\n<p><strong>Employer:<\/strong> ~4.81% provision<\/p>\r\n<p><strong>Self-employed:<\/strong> Not Applicable<\/p>\r\n<p><strong data-start=\"1186\" data-end=\"1204\">Learn more at:<\/strong> <a href=\"https:\/\/clc.gov.in\/clc\/acts-rules\/payment-gratuity-act\"><strong data-start=\"1205\" data-end=\"1254\">Payment of Gratuity Act \u2013 Official Guidelines<\/strong><\/a><\/p>\r\n<h2><span data-contrast=\"auto\">Employer vs Employee Payroll Taxes<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:480,&quot;335559739&quot;:120}\">\u00a0<\/span><\/h2>\r\n<h4 style=\"margin-bottom: 15px;\">Comparison Table<\/h4>\r\n<div style=\"overflow-x: auto;\">\r\n<table style=\"width: 100%; border-collapse: collapse; border: 1px solid #ddd; font-size: 16px; line-height: 1.6;\">\r\n<thead>\r\n<tr style=\"background: #f5f7fb;\">\r\n<th style=\"padding: 14px; text-align: left; width: 36%; border: 1px solid #ddd;\">Payroll Tax<\/th>\r\n<th style=\"padding: 14px; text-align: left; width: 24%; border: 1px solid #ddd;\">Employee Pays<\/th>\r\n<th style=\"padding: 14px; text-align: left; width: 40%; border: 1px solid #ddd;\">Employer Pays<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Tax Deducted At Source (TDS)<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (deducted from salary)<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (deducts and deposits with the government)<\/td>\r\n<\/tr>\r\n<tr style=\"background: #fcfcfc;\">\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Employee&#8217;s Provident Fund (EPF)<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Employees&#8217; State Insurance (ESI)<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713<\/td>\r\n<\/tr>\r\n<tr style=\"background: #fcfcfc;\">\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Professional Tax<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (where applicable)<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (deducts and remits to state government)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Labour Welfare Fund (LWF)<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (in applicable states)<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (employer contribution in applicable states)<\/td>\r\n<\/tr>\r\n<tr style=\"background: #fcfcfc;\">\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\"><strong>Gratuity<\/strong><\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2717<\/td>\r\n<td style=\"padding: 14px; border: 1px solid #ddd; vertical-align: top;\">\u2713 (paid by employer upon eligibility)<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n<h2>\u00a0<\/h2>\r\n<h2><strong>Payroll Tax Examples\u00a0<\/strong><\/h2>\r\n<h5 aria-level=\"3\"><span data-contrast=\"none\">Example 1<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h5>\r\n<h4>Small business with one employee\u00a0<\/h4>\r\n<p><span data-contrast=\"none\">For instance, a bakery hires 1 cashier for 3000 Rs. per month. Here the bakery withholds the employee&#8217;s social security,\u00a0Medicare\u00a0and applicable income taxes from the employee\u2019s paychecks. The bakery also pays its own share of <strong><a href=\"https:\/\/www.skizzlehr.tech\/resources\/blog\/payroll-tax-compliance-guide-for-hr-team\/\">payroll taxes<\/a><\/strong> before paying the employee.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\r\n<h5 aria-level=\"3\"><span data-contrast=\"none\">Example 2<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h5>\r\n<h4>Company with multiple employees\u00a0<\/h4>\r\n<p><span data-contrast=\"none\">Imagine an online business expanding to multiple locations and hiring 300 employees remotely from different states. Here, payroll tax calculations become difficult due to different state payroll tax rules. A <strong><a href=\"https:\/\/www.skizzlehr.tech\/index.php\">modern HRMS software<\/a><\/strong> automatically calculates taxes for each employee without any errors and saves time.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\r\n<h5 aria-level=\"3\"><span data-contrast=\"none\">Example 3<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:320,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h5>\r\n<h4>Hourly employee payroll tax example\u00a0<\/h4>\r\n<p><span data-contrast=\"none\">For example, a retail store employee earns Rs. 20 per hour and works\u00a080 hours\u00a0in a pay period, which makes his earnings Rs. 2000. Here payroll tax is deducted from employee\u2019s\u00a0earnings\u00a0and the employer pays\u00a0additional\u00a0payroll taxes separately.\u00a0<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\r\n<h2 aria-level=\"2\"><strong>Payroll Tax Deductions Explained\u00a0<\/strong><\/h2>\r\n<h3 aria-level=\"3\">Common Payroll Tax Deductions\u00a0<\/h3>\r\n<ul>\r\n<li><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><b><span data-contrast=\"none\">Tax Deducted at Source (TDS):<\/span><\/b><span data-contrast=\"none\">\u00a0A system where a person sending payment cuts a small piece of tax directly from the money and sends it to the government.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Employee Provident Fund (EPF):<\/span><\/b><span data-contrast=\"none\">\u00a0EPF is a government-backed retirement saving scheme for workers.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Professional Tax (PT):<\/span><\/b><span data-contrast=\"none\">\u00a0A direct tax charged by the government of India on income from employment,\u00a0trade\u00a0or professions for public infrastructure.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Employee State Insurance (ESIC):<\/span><\/b><span data-contrast=\"none\">\u00a0ESIC is a program backed by the government of India for health insurance and social security.\u00a0<\/span><span data-ccp-props=\"{&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3 aria-level=\"2\"><strong>How Payroll Software Like\u00a0SkizzleHR\u00a0Simplifies Payroll Tax Management ?<\/strong><\/h3>\r\n<h4 aria-level=\"3\">Benefits\u00a0<\/h4>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Automatic payroll tax calculation<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Tax filing\u00a0assistance<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Compliance alerts<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Payroll reports<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Employee self-service<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"2\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"none\">Integration with HR and accounting systems<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3 aria-level=\"2\"><span data-contrast=\"none\">Payroll Tax Best Practices<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h3>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Stay updated with tax regulations<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Use automated payroll software<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">Conduct payroll audits<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">Maintain\u00a0accurate\u00a0records<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"none\">Verify employee information<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"6\" data-aria-level=\"1\"><span data-contrast=\"none\">Train HR and payroll teams<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"\" data-listid=\"6\" data-list-defn-props=\"{&quot;335551500&quot;:921626,&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;}\" data-aria-posinset=\"7\" data-aria-level=\"1\"><span data-contrast=\"none\">Review payroll reports regularly<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3 aria-level=\"2\"><span data-contrast=\"none\">Conclusion<\/span><span data-ccp-props=\"{&quot;134245418&quot;:false,&quot;134245529&quot;:false,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/h3>\r\n<p><span data-contrast=\"none\">Payroll tax calculations and state law compliance are challenging for businesses, which is why it is essential to invest in smart automation tools backed by modern technology to accelerate payroll operations.\u00a0<strong><a href=\"https:\/\/www.skizzlehr.tech\/index.php\">SkizzleHR<\/a><\/strong>\u00a0is a one-stop solution for all your payroll needs, from employee data setup and <strong><a href=\"https:\/\/www.skizzlehr.tech\/time-attendance\/attendance-management.php\">attendance tracking<\/a> <\/strong>to\u00a0payslip\u00a0distribution and statutory filing &amp; reporting<\/span><span data-contrast=\"auto\">.<\/span><\/p>\r\n<p><span data-contrast=\"auto\"><br \/><\/span><strong><a href=\"https:\/\/www.skizzlehr.tech\/pages\/request-demo.php\">Schedule a\u00a0Free Demo!<\/a><\/strong><\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":2318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,172],"tags":[25],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Payroll Tax? Types, Examples &amp; Payroll Tax Guide<\/title>\n<meta name=\"description\" content=\"Explore what payroll tax is, calculation, types, examples, and how payroll software simplifies employer tax management.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.skizzlehr.tech\/resources\/blog\/what-is-payroll-tax-definition-types-and-examples\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Payroll Tax? 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