The payroll taxes paid by businesses are mainly borne by employees in the form of lower wages. As explained by the U.S. Government Accountability Office (and many other credible sources), “While employees and employers pay equal amounts in social insurance taxes, economists generally agree that employees bear the entire burden of social insurance taxes in the form of reduced wages.” This is evidenced by the fact that workers’ average wages and benefits - including payroll taxes paid by businesses - have increased at roughly the same rate for most of modern U.S. history.