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
One proposal gaining support at least among progressive members is a payroll tax, loosely modeled after a Massachusetts measure, targeting companies that do not offer employees health insurance.
—
Nicole Nixon, Sacbee.com, 8 Jan. 2026
As a result of that inaction, California businesses will continue facing automatic payroll tax hikes to repay that debt.
—Vince Fong, Oc Register, 8 Jan. 2026
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
See All Example Sentences for payroll tax
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Nicole Nixon, Sacbee.com, 8 Jan. 2026
As a result of that inaction, California businesses will continue facing automatic payroll tax hikes to repay that debt.
—Vince Fong, Oc Register, 8 Jan. 2026
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
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 12 Jan. 2026.
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