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

Proposals by Larson and Senators Bernie Sanders and Sheldon Whitehouse would uncap the payroll tax (with a doughnut hole) and raise taxes on investment income. — Marc Novicoff, The Atlantic, 24 July 2026

Oregon's Measure 120, which would have increased the state's fuel tax and public transportation payroll tax, was rejected overwhelmingly by voters in May. — Paxton Honerkamp, CNBC, 21 July 2026

Ideas range from boosting the payroll tax that helps fund Social Security to raising the full retirement age. — Medora Lee, USA Today, 16 July 2026

The goal is to conceal revenue and reduce the amount of income, sales, or payroll tax owed. — Kelly Phillips Erb, Forbes.com, 11 July 2026

Rhymes for payroll tax

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• carrybacks
• haversacks
• lumberjacks
• maniacs
• microcracks
• minimax
• paperbacks
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• quarterbacks
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• telefax

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