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

Stronger-than-expected income and payroll tax collections, running about $75 billion above the February baseline, have cushioned some of the blow. — Nick Lichtenberg, Fortune, 10 Aug. 2026

The combined employer+employee payroll tax is 16%, on the first $85,000 of annual income – practically no upper limit at all. — Nathan Lewis, Forbes.com, 7 Aug. 2026

In June, the Financial Crimes Enforcement Network issued guidance to help banks spot patterns tied to unlawful employment, labor brokers, shell companies, payroll tax evasion and identity theft. — Richard Escobedo, CBS News, 6 Aug. 2026

For payroll tax issues, the company will assign you to an attorney and senior case manager. — Faith Wakefield, USA Today, 3 Aug. 2026

Rhymes for payroll tax

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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