CEVAP:

The workers bear the bulk of the burden of a payroll tax if the labor supply is relatively inelastic than the labor demand, and the firms bear the bulk of the burden of a payroll tax if the labor supply is relatively elastic than the labor demand. Labor demand is more elastic than the labor supply. Thus, it can be said that a tax burden goes more heavily on the side of the market that is less price elastic which is labor supply. So, labor pays more of the payroll tax than the employers.