Talking payroll taxes on Labor Day

CPA Anthony Mangiameli joins Mark Gruba in studio

ROCHESTER, N.Y. (WROC-TV) - Labor Day was created more than one hundred years ago to celebrate the social and economic achievements of the American worker. Now, we all see some of our hard work get taken away from our paycheck in the form of payroll taxes. It's easy to lose sight where that money goes and how that may benefit us.

CPA Anthony Mangiameli says there are actually two payroll taxes. 6.2% goes to the Social Security Administration. There's also a Medicare tax of 1.8% which goes to the Medicare fund. They're both withheld directly from the paycheck. 

Paying these taxes provides you with Social Security coverage and give you, your spouse, and another eligible family members with certain retiree, disability and survivor benefits. 

These taxes are different from the federal and state income taxes that workers pay. The federal income tax is based on income and puts you in a bracket paying anywhere from 10% to 39.8% but it's not necessarily the rate withheld from your paycheck each month. New York State also has tax brackets ranging from 4% to 8.8%.

For more information about taxes you can visit the New York State Society of CPA's website by clicking here.


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