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

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Grasp the nettle of Social Security reform and redesign the payroll tax, which kicks in at the first dollar of earnings. Clive Crook, Twin Cities, 21 Aug. 2025 To determine the numbers, GOBankingRates used 2025 federal and state tax bracket data from the Tax Foundation and payroll tax rates from the Social Security Administration. Mike Winters, CNBC, 19 Aug. 2025 Other possibilities include adjusting eligibility requirements or experimenting with alternatives that create higher annual returns for the system and allow individuals to invest a small portion of their payroll tax contributions in private retirement accounts. Editorial, Boston Herald, 15 Aug. 2025 Vermont passed Act 76 in 2023, which will fund childcare through a 0.44% payroll tax; Massachusetts added half a billion dollars in funding for childcare providers in 2024; and Connecticut passed a bill in 2025 that creates a new endowment for early childhood education. Alana Semuels, Time, 15 Aug. 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 5 Sep. 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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