payroll tax

noun

Definition of payroll tax 

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

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payroll tax

noun
pay·roll tax

Legal Definition of payroll 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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