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
Completely eliminating the cap and thus subjecting all earnings to the payroll tax would obviously have a much larger impact.
—
Christian Weller, Forbes.com, 18 June 2025
Social Security is financed by a payroll tax paid by employers and employees.
—Annabella Rosciglione, The Washington Examiner, 15 June 2025
The tips are reported to the employer for payroll tax withholding purposes.
—Aliss Higham, MSNBC Newsweek, 21 May 2025
That’s what the payroll tax being considered in Springfield would do.
—The Editorial Board, Chicago Tribune, 1 May 2025
See All Example Sentences for payroll tax
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
Christian Weller, Forbes.com, 18 June 2025
Social Security is financed by a payroll tax paid by employers and employees.
—Annabella Rosciglione, The Washington Examiner, 15 June 2025
The tips are reported to the employer for payroll tax withholding purposes.
—Aliss Higham, MSNBC Newsweek, 21 May 2025
That’s what the payroll tax being considered in Springfield would do.
—The Editorial Board, Chicago Tribune, 1 May 2025
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 8 Jul. 2025.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share