[hervature]

At a very high level, revenues enter your bank account and expenses leave your bank account. In this case, you are getting confused about the taxes. There is employee compensation (which the business will withhold taxes on behalf of the individual) and then payroll taxes (which the employee is not responsible for). In essence, "their taxes" is not the correct classification. The business pays the employee (and facilitates the tax collection) and also pays the tax the business owes.