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There are four component parts that constitute payments to a workers public sector retirement fund, of which the payroll tax paid by workers furnishes only half. Employers are required to pay the other half based on a percentage of the workers gross wages (W-2 income). The employers share of mandated payments on behalf of the worker is not seen in the worker's gross wages, yet the cost is very real. Other factors also weigh on employers ability to give raises, extend overtime, or create new jobs.
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There are four component parts that constitute payments to a workers public sector retirement fund, of which the payroll tax paid by workers furnishes only half. Employers are required to pay the other half based on a percentage of the workers gross wages (W-2 income). The employer's share of mandated payments, on behalf of the worker, is not seen in the worker's gross wages, yet the cost is very real. Other factors also weigh on employers ability to give raises, extend overtime, or create new jobs.
    
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