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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Completely eliminating the cap and thus subjecting all earnings to the payroll tax would obviously have a much larger impact. Christian Weller, Forbes.com, 18 June 2025 Social Security is financed by a payroll tax paid by employers and employees. Annabella Rosciglione, The Washington Examiner, 15 June 2025 The tips are reported to the employer for payroll tax withholding purposes. Aliss Higham, MSNBC Newsweek, 21 May 2025 That’s what the payroll tax being considered in Springfield would do. The Editorial Board, Chicago Tribune, 1 May 2025 See All Example Sentences for payroll tax

Browse Nearby Words

Cite this Entry

“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 1 Jul. 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
Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!