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 program is funded by a payroll tax increase split between employers and employees.
—
Ashley Grams, CBS News, 1 Jan. 2026
The rest will be covered by a new payroll tax shared by employers and employees.
—Pioneer Press, Twin Cities, 30 Dec. 2025
The federal government typically excludes workers' health premiums from their taxable income and payroll tax.
—Greg Iacurci, CNBC, 12 Dec. 2025
Social Security is financed by a payroll tax paid for by employers and employees.
—Asher Notheis, The Washington Examiner, 30 Nov. 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.
Ashley Grams, CBS News, 1 Jan. 2026
The rest will be covered by a new payroll tax shared by employers and employees.
—Pioneer Press, Twin Cities, 30 Dec. 2025
The federal government typically excludes workers' health premiums from their taxable income and payroll tax.
—Greg Iacurci, CNBC, 12 Dec. 2025
Social Security is financed by a payroll tax paid for by employers and employees.
—Asher Notheis, The Washington Examiner, 30 Nov. 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 11 Jan. 2026.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share