Various local tax withholdings such as city, county, or school district taxes, state disability or unemployment insurance. Diana Van Blaricom is a certified Professional in Human Resources PHR. Income tax is also imposed on the taxable income of most corporations and again on dividends paid to stockholders, although individuals usually pay a preferential tax rate on dividends; this is sometimes referred to as double taxation. For every dollar of Social Security and Medicare tax that is withheld from an employee, the employer must match and pay that amount to the IRS.

The Tax History Museum provides a synthetic overview of the history of American taxation. Employers must hand these withholdings over to various tax agencies.