Glossary • Updated 2026
Payroll Tax
Employer-side FICA (7.65%), unemployment insurance, and withholding remitted per pay run.
In detail
Creates nexus wherever the employee sits: one W-2 can mean a second state’s $800.
S-corps must run owner payroll at reasonable compensation.
Late deposits draw some of the steepest IRS penalties in the code.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries