What type of tax is deducted solely from employees' wages?

Income tax is deducted solely from employees' wages, which reflects the earnings that individuals make from their employment. This tax is withheld by employers and remitted to the government on behalf of their employees. It is typically based on a percentage of the employee's earnings and contributes to funding public services and government operations.

In contrast, corporate tax is levied on the profits of corporations and does not directly involve employees' wages. Self-employment tax applies to individuals who work for themselves and encompasses both Social Security and Medicare taxes, but it does not pertain to wage deductions made by employers. Property tax is assessed on real estate and is not related to income earned from employment. Understanding the specifics of each tax type is essential for comprehending how payroll and taxation work within the broader economic framework.