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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For payroll tax issues, the company will assign you to an attorney and senior case manager. Faith Wakefield, USA Today, 3 Aug. 2026 Proposals by Larson and Senators Bernie Sanders and Sheldon Whitehouse would uncap the payroll tax (with a doughnut hole) and raise taxes on investment income. Marc Novicoff, The Atlantic, 24 July 2026 Congress has changed Social Security many times over its nearly 90-year history—payroll tax increases, expansion of disability coverage, and a rise in the retirement age, to name a few. Bydoug Ashburn, Encyclopedia Britannica, 23 July 2026 Oregon's Measure 120, which would have increased the state's fuel tax and public transportation payroll tax, was rejected overwhelmingly by voters in May. Paxton Honerkamp, CNBC, 21 July 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 Aug. 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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