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
The real solution to Social Security’s fiscal sustainability is lifting the payroll tax cap, currently set at $184,500 in wage income, and including investment income in the tax base rather than cutting benefits for workers who have paid into the program their entire careers.
—
Business Columnist, Los Angeles Times, 2 Apr. 2026
Social Security is financed by a payroll tax paid for by employers and employees.
—Asher Notheis, The Washington Examiner, 26 Mar. 2026
The think tank has also explored replacing the employer side of the Social Security payroll tax and capping the program's annual cost-of-living adjustments.
—Lorie Konish, CNBC, 25 Mar. 2026
Employers pared back hiring last year to cope with Chancellor of the Exchequer Rachel Reeves’ payroll tax rises and large increases in the minimum wage.
—Irina Anghel, Bloomberg, 9 Mar. 2026
See All Example Sentences for payroll tax
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Business Columnist, Los Angeles Times, 2 Apr. 2026
Social Security is financed by a payroll tax paid for by employers and employees.
—Asher Notheis, The Washington Examiner, 26 Mar. 2026
The think tank has also explored replacing the employer side of the Social Security payroll tax and capping the program's annual cost-of-living adjustments.
—Lorie Konish, CNBC, 25 Mar. 2026
Employers pared back hiring last year to cope with Chancellor of the Exchequer Rachel Reeves’ payroll tax rises and large increases in the minimum wage.
—Irina Anghel, Bloomberg, 9 Mar. 2026
See All Example Sentences for payroll tax
Cite this Entry
“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 9 Apr. 2026.
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