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
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In May 2020, voters passed a ballot measure that gave Metro a portion of Hamilton County's sales taxes instead of a city payroll tax. Patricia Gallagher Newberry, The Enquirer, 15 July 2025 The tax break would apply to workers who typically receive cash tips reported to their employer for payroll tax withholdings, according to the summary of the bill. Kate Dore, Cfp®, Ea,lorie Konish,greg Iacurci,jessica Dickler,annie Nova,ana Teresa Solá, CNBC, 1 July 2025 The budget bill also includes language that would give unions the right to take contractors to court for workers compensation, insurance and payroll tax violations. Ben Christopher, Mercury News, 27 June 2025 Trump promised while campaigning to remove taxes on Social Security, which is funded through a payroll tax and then taxed again, above an income threshold, upon disbursal to bolster the Social Security fund along with Medicare. Tobias Burns, The Hill, 21 May 2025 See All Example Sentences for payroll tax

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“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 22 Aug. 2025.

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
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