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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The Social Security wage base cap determines the maximum amount of earnings subject to the Social Security payroll tax each year. Hollie Silverman, MSNBC Newsweek, 21 Oct. 2025 How close will the Giants get to the payroll tax threshold? Andrew Baggarly, New York Times, 7 Oct. 2025 As the California Business Roundtable recently noted in a report, the state’s employers will soon pay a 5.2% payroll tax — nearly nine times as much as those in other states that are debt-free — plus their state payroll taxes. Dan Walters, Mercury News, 7 Oct. 2025 The government can raise revenues by increasing the payroll tax that funds Social Security or the income threshold to continue paying the tax or raise the full retirement age. Medora Lee, USA Today, 5 Oct. 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 29 Oct. 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
Last Updated: - Updated example sentences
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