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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With Social Security payments now exceeding payroll tax collections and other trust fund earnings, some of those IOUs, in the form of Treasury securities, are being redeemed to pay beneficiaries. Doug Criscitello, Forbes.com, 14 Apr. 2025 Senate Bill 1369 would provide financial assistance for working families to pay for child care through a new 1.5% payroll tax on large, for-profit employers and help streamline the process of enrolling in child care programs for low-income families. Laura Tillman, Hartford Courant, 31 Mar. 2025 These proposals included a repeal of a tax on solar energy, a repeal of free community college and a repeal of a recent 1% payroll tax. Jackson Thompson, Fox News, 21 Mar. 2025 The act calls for Social Security benefits to rise by $2,400 per year and would be fully funded for the next 75 years through application of a payroll tax on all income above $250,000. Dan Perry, Newsweek, 28 Feb. 2025 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 19 Apr. 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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