What is an Employer?

An employer is an organization or individual that pays individuals for work performed under a contract of employment. This party is usually the one that sets the terms of employment and writes the employment agreement with an employee. Because of this arrangement, the employer has a legal obligation to withhold payroll taxes and income taxes from employee pay, and remit these funds to the applicable government. Employment agreements are usually classified as at-will, which means that the employee can quit at any time, and the employer can fire the person at any time.