<P> In China, the payroll tax is a specific tax which is paid to provinces and territories by employers, not by employees . The tax is deducted from the worker's pay . The Chinese Government itself requires only one tax to be withheld from paychecks: the PAYG (or pay - as - you - go) tax, which includes medicare levies . </P> <P> In Croatia, the payroll tax is composed of several items: </P> <Ul> <Li> national tax on personal income (Croatian: porez na dohodak), which is applied incrementally with rates of 0% (personal exemption), 24%, 39% </Li> <Li> optional local surcharge on personal income (Croatian: prirez), which is applied by some cities and municipalities on the amount of national tax, currently up to 18% (in Zagreb) </Li> <Li> pension insurance (Croatian: mirovinsko osiguranje), universal 20%, for some people divided into two different funds, one of which is government - management (15%) and the other is a selected pension fund (5%) </Li> <Li> health and unemployment insurance (Croatian: zdravstveno osiguranje), divided into 15% for general health insurance, 0.5% for work - related accident insurance, and 1.7% for unemployment insurance </Li> </Ul> <Li> national tax on personal income (Croatian: porez na dohodak), which is applied incrementally with rates of 0% (personal exemption), 24%, 39% </Li>

Social security and personal income tax are called payroll taxes because