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Payroll taxes come out of an employee’s check. Employees do not have to worry about paying this tax directly since it is withheld by the employer. The employer then pays the tax to the IRS for Federal income, Medicare, and Social Security. Employees can see how much is paid to each category on their check stub. Self-employed individuals still pay payroll taxes in the form of self-employment tax.
Unemployment insurance is also funded by the employer and can be considered part of payroll taxes. When an employee is terminated, they can use the amount of paid unemployment insurance until they find a new job.
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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.
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