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

For now, the main considerations are cutting benefits for wealthier Americans or eliminating the cap on Social Security's payroll tax. — Ashley Lopez, NPR, 28 Aug. 2026

Currently, the payroll tax that funds Social Security applies to a maximum of $184,500 in income. — Kevin Freking, Fortune, 27 Aug. 2026

Since 2010, Social Security benefits have exceeded payroll tax collections. — Editorial Board, Washington Post, 18 Aug. 2026

Chai said her plan would keep the Social Security payroll tax cap and payroll tax rate from increasing, eliminate the employer portion of the self-employment tax and require government employees to participate in Social Security. — Lorie Konish, CNBC, 16 Aug. 2026

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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