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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For households with income of $1 million or more, only about 25% was subject to the payroll tax. Michael Hiltzik, Los Angeles Times, 7 Jan. 2025 In 2015, according to the U.S. Department of Justice, Asker was sentenced to 50 months in federal prison after he was convicted of filing false income tax returns and payroll tax returns for several of the Happy’s Pizza franchises. Susan Selasky, Detroit Free Press, 30 Dec. 2024 With a 2 percent inflation rate and 2 percent productivity growth, that couple would be paying the Biden payroll tax sometime in their 50’s. John C. Goodman, Forbes, 16 Jan. 2025 An increase to the National Insurance (NI) payroll tax paid by employers was by far the largest revenue raising measure announced Wednesday, with Reeves forecasting the move would raise £25 billion ($32.3 billion) per year over the course of the parliament. Karen Gilchrist, CNBC, 31 Oct. 2024 See all Example Sentences for payroll tax 

Dictionary Entries Near payroll tax

Cite this Entry

“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 11 Feb. 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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