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Payroll taxes are a significant stream of revenue for the United States Government. In 2021 more than $ 1.25 trillion was collected in federal employment taxes and more than $1.5 trillion collected in income taxes withheld by employers. The total taxes paid over by employers on behalf of employees totaled more than $2.7 trillion, representing more than 65% of all the taxes collected by the United States Government.1 Income tax and Federal Insurance Contributions Act (“FICA”) taxes are withheld from each employee’s paycheck by the employer and paid over to the United States Government on either a weekly, monthly, quarterly, or annual basis depending upon the size of the employer’s payroll.