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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Lawmakers can make up for the shortfall with taxes, such as by raising the amount of income subject to a payroll tax (currently $184,500). The Week Us, TheWeek, 9 Apr. 2026 OpenAI warns that as AI automates more work, the wage and payroll tax revenue that funds Social Security, Medicaid, SNAP, and housing assistance could collapse. Nick Lichtenberg, Fortune, 7 Apr. 2026 The real solution to Social Security’s fiscal sustainability is lifting the payroll tax cap, currently set at $184,500 in wage income, and including investment income in the tax base rather than cutting benefits for workers who have paid into the program their entire careers. Business Columnist, Los Angeles Times, 2 Apr. 2026 In perhaps the most sweeping move, federal prosecutors in New Jersey charged Schwartz with orchestrating a $39 million payroll tax scheme connected to his nursing home empire. Jeremy Kohler, ProPublica, 30 Mar. 2026 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 13 Apr. 2026.

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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