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

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The largest amount, at $960,000, was disclosed last year by political operatives Jack Burkman and Jacob Wohl on behalf of Joseph Schwartz — a nursing home operator who pleaded guilty to charges stemming from a nearly $39 million payroll tax fraud scheme. Gabe Kaminsky, CBS News, 24 June 2026 That accounting change reported Social Security’s dedicated payroll tax revenue alongside all other federal income in a single bottom-line figure, making the overall deficit look smaller. Thomas Hager, Forbes.com, 23 June 2026 Social Security’s revenue is further compromised by the declining number of immigrants in the workforce who contribute to the program through the payroll tax, even though many of them will never be eligible to receive its benefits. Naomi Cahn, The Conversation, 22 June 2026 The case marks the first for Hochman’s new Business Tax Fraud Unit, established to investigate financial crimes involving business tax evasion, payroll tax fraud, falsified business records and underground economy schemes. Jessica Schladebeck, New York Daily News, 19 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 30 Jun. 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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