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ITG FAQ #1 Answer-What are employment taxes?

There are four separate employment taxes imposed by the Internal Revenue Code:

  • Federal Insurance Contributions Act (FICA) – Internal Revenue Code §3101 through §3128. It is imposed on both the employer and employee and collected by the employer.
  • Federal Unemployment Tax Act (FUTA) – Internal Revenue Code § 3301 through § 3311. It is imposed on the employer.
  • Collection of Income Tax at Source (Federal Income Tax Withheld) – Internal Revenue Code § 3401 through § 3406. It is imposed on the employee but collected by the employer.
  • Railroad Retirement Tax Act (RRTA) – Internal Revenue Code § 3201, though similar to FICA, it is for railroad employees.

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Page Last Reviewed or Updated: 06-Dec-2016