The tax incidence of a payroll tax results in an increase in net wages.

Name: The tax incidence of a payroll tax results in an increase in net wages.
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The tax incidence of a payroll tax falls on both the employer and employee, resulting in a decrease in net wages. The employer may pass some of the tax burden onto the employee through lowering their wage or benefits, but ultimately both parties are affected.

The Tax Incidence of a Payroll Tax Results in an Increase