Incentive differences payroll and income tax Do payroll and income tax create different incentives? Is there any difference at all economically speaking? 
I suppose different tax deductions and tax rates may or may not apply. If so, what deductions, rates. Are there any books/research on the topic?
Just to add a basic point not mentioned in other answers.  Payroll taxes relate specifically to circumstances involving employers and employees.  Income taxes apply to income from employment, but also to income from other sources which (depending on a country's tax rules) may include self-employment, pensions, savings and investments, property rents, etc.

This makes a significant difference to the incentive effects of the two types of tax. In particular, a payroll tax can create an incentive for workers to become self-employed and/or for their 'employers' to encourage them to do so. As a consequence it makes it important for the authorities to define clearly the criteria under which a worker is deemed to be an employee or self-employed (in the UK for example the criteria are as outlined here).