Which payroll tax is typically shared between the employer and employee?

The Medicare tax is typically shared between the employer and employee as part of the federal payroll tax system. Both the employer and the employee contribute a percentage of the employee's gross wages to fund Medicare, which provides health insurance for individuals aged 65 and older, as well as for some younger individuals with disabilities. This shared responsibility is a key component of how federal payroll taxes are structured.

In contrast, state income tax, federal unemployment tax, and local taxes can vary significantly in how they are assessed and collected. State income tax rates and responsibilities can differ from one state to another, and typically, it is the employee's responsibility to pay this tax, with the employer acting as a withholding agent. Federal unemployment tax is solely paid by the employer and does not involve the employee’s contribution. Local taxes may also vary, and while some may apply to both employers and employees, it's common for local taxes not to follow the same sharing mechanism as Medicare tax.