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Fact Sheet - IRS tax forms

Understanding Taxes 1 Fact Sheet t . Module 1: Payroll Taxes and Federal Income Tax Withholding . Payroll and income taxes are withheld from employees’ pay by their employers. Employers send withheld taxes to the federal government. Payroll taxes include Social Security (FICA) tax and Medicare tax. • The Social Security tax rate is 6.2 percent.

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