payroll tax

noun

1
: a tax that is paid by a company and that is based on the amount of money that the company spends paying all of its employees
2
: money that is taken from a person's pay and given directly to the government as income tax

Examples of payroll tax in a Sentence

Recent Examples on the Web
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When benefit payments exceed payroll tax income, the program relies on the trust funds to help make up the shortfall. Lorie Konish, CNBC, 16 June 2026 Assisting with payroll tax issues, sales tax audits, and business restructuring to satisfy tax obligations. Nick Perry, USA Today, 2 July 2026 The bipartisan reform proposal would tweak the payroll tax that funds Social Security. Max Zahn, ABC News, 2 July 2026 Eliminating the payroll tax cap—currently set at $184,500 in wages—would now close only about half of the solvency gap, the CRFB found. Nick Lichtenberg, Fortune, 17 June 2026 See All Example Sentences for payroll tax

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“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 9 Jul. 2026.

Legal Definition

payroll tax

noun
pay·​roll tax
: a tax that is levied as a percentage of an employee's pay and is usually paid by the employer
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