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Do all US states have equal Employer Tax rates?
Is there any US state which has no employer tax?
Is Employer Tax a federal or State tax?

2007-07-18 10:18:41 · 4 answers · asked by Rui 1 in Business & Finance Taxes United States

4 answers

There are 9 US States which have no State Income Tax on income earned from employment; Hence, no state income tax is withheld from your paycheck. Visit the link below for 2006 State Income Tax rates.

"Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income."

All 50 states withhold Federal tax.

2007-07-18 12:02:31 · answer #1 · answered by Anonymous · 0 0

Federal taxes are the same across all states. Every employer is required to pay the employer half of social security and medicare.

Employers also pay various taxes to the state. One is for unemployment comp - that's not even the same for every employer WITHIN a state, let alone across states. Depending on the state, there might be other employer taxes.

2007-07-18 22:35:26 · answer #2 · answered by Judy 7 · 0 0

Employers in all states are required to withhold federal income tax, social security and medicare tax at the same rate (as prescribed by the IRS).

Not all states have state income taxes. In states that have state income taxes, the employer must also withhold the state taxes as prescribed by the state taxing authority. Some cities have income taxes that must be withheld also.

2007-07-18 17:28:24 · answer #3 · answered by skipper 7 · 1 0

Every state has it's own tax rates. They're all a bit different.

What do you mean by "Employer Tax?" Employers pay payroll taxes among their many taxes but I don't know of anything called "Employer Tax" that I've ever dealt with.

2007-07-18 17:33:43 · answer #4 · answered by Bostonian In MO 7 · 0 0

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