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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Like competitors, QuickBooks Workforce automates your federal and state payroll tax payments during setup to ensure compliance. Kathy Yakal, PC Magazine, 6 May 2026 Extend the payroll tax to health benefits Under current law, the payroll tax applies only to income, and not to other forms of compensation, like health insurance. Daniel De Visé, USA Today, 4 May 2026 No change to payroll tax withholding Despite the headlines, employers must continue to withhold and remit federal and state income tax, Social Security tax, Medicare tax, and other state payroll taxes on overtime and tips as usual. Fennemore, Oc Register, 30 Apr. 2026 Voters should also be aware of and reject the insane transfer tax and payroll tax proposals voted on by the Board of Supervisors. John Franklin, San Diego Union-Tribune, 24 Apr. 2026 See All Example Sentences for payroll tax

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Cite this Entry

“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 13 May. 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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