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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The case marks the first for Hochman’s new Business Tax Fraud Unit, established to investigate financial crimes involving business tax evasion, payroll tax fraud, falsified business records and underground economy schemes. Jessica Schladebeck, New York Daily News, 19 June 2026 Eliminating the payroll tax cap—currently set at $184,500 in wages—would now close only about half of the solvency gap, the CRFB found. Nick Lichtenberg, Fortune, 17 June 2026 One option would be to raise the payroll tax to make up the difference. Aimee Picchi, CBS News, 17 June 2026 Others have included raising the full retirement age, increasing the payroll tax or capping the benefit. Medora Lee, USA Today, 16 June 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 21 Jun. 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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