does everyone pay a payroll tax 
yes for the most part everyone pays a payroll tax which is automatically deducted from one s paycheck the social security and medicare taxes are regressive everyone pays the same amount while income tax is progressive those who make more are taxed at a higher rate if you don t receive a paycheck you must pay estimated taxes equivalent to what would have been withheld from your income the bottom linepayroll taxes are the taxes employees and employers pay on wages tips and salaries these taxes include federal state and local taxes as well as fica taxes which are taxes for social security and medicare these taxes are all taken out of an employee s wages these taxes fund a range of programs including social security healthcare defense spending government salaries and workers compensation local governments may collect a small payroll tax to maintain and improve local infrastructure and services including first responders road maintenance and parks 