Last Week in Payroll: Federal Employment Taxes
ThomsonReuters
JULY 7, 2021
Federal Employment Taxes. The United States first imposed a federal income tax briefly during the American Civil War and also in the 1890s. However, it was the 16 th Amendment to the U.S. Constitution in 1913 that permanently legalized a federal income tax. Then, in 1935, the Social Security Act was signed into law, which resulted in a tax on both the employer and employee (6.2% each).
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