How Do Taxes Work on Paychecks

When an employer hires someone to work for his company, the payment of compensation is the most important part for the employee and one of the most sensitive, financially speaking, for the employer. Why? Nowadays, the different payment methods and tax reforms force employers to keep up to date with IRS information and look for tools that help them to facilitate their work, without neglecting the accounting, administrative and legal aspects. In this article, we will explain what a paycheck is, and how taxes work on them.