What is a difference between payroll and income taxes?

Both payroll taxes and income taxes are based on an employee's wages or salary. The difference is who pays. A payroll tax is paid at least partly by the employer, while income taxes are paid by employees. Federal payroll taxes are for Social Security, Medicare and unemployment insurance. There usually is a state unemployment insurance tax, too.

Payroll taxes is paid partly by employer, income tax is paid by the employee