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 tariff revenue is larger than what the government would collect through a 1% payroll tax or by reducing military personnel by 17%, according to the nonpartisan Committee for a Responsible Federal Budget. Jennifer Borresen, USA Today, 3 Nov. 2025 That number, also called the wage base, represents the limit on earnings subject to the Social Security payroll tax and is adjusted each year. Lorie Konish, CNBC, 30 Oct. 2025 The revenue outlook is based on conventional scoring, which factors in reductions to income and payroll tax receipts but not broader economic effects. Jesus Mesa, MSNBC Newsweek, 27 Oct. 2025 How close will the Giants get to the payroll tax threshold? Andrew Baggarly, New York Times, 7 Oct. 2025 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 10 Nov. 2025.

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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