If you own a small business, then it is important to understand the current payroll tax rates. Employees of your company are taxed at different rates based on a number of different factors. Often times you are left to wonder exactly how to calculate payroll tax rates. If you are unable to afford an accountant or hire a payroll company, the internet is a great resource that will help you calculate payroll taxes. First, it is important for you to understand some of the different payroll taxes. There are two standard payroll taxes; the first is the tax that the employer must withhold from the employees pay. This type of tax is referred to as the withholding tax. The next tax actually comes out of your businesses working funds and must be paid directly to the IRS. This tax covers the amount of money that must be paid to support Medicare and Social Security.