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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Taxes on businesses Senate Democrats are proposing a payroll tax similar to Seattle's JumpStart tax. Melissa Santos, Axios, 24 Mar. 2025 Trump could also cut the payroll tax, which tends to discourage companies from hiring workers, for manufacturing firms. Chad P. Bown, Foreign Affairs, 11 Mar. 2025 One of the most effective Social Security reforms proposed by Democrats is to raise or (preferably) eliminate the payroll tax cap. Michael Hiltzik, Los Angeles Times, 7 Jan. 2025 The new 5% payroll tax applies to Seattle companies with workers who make at least $1 million a year. Melissa Santos, Axios, 18 Mar. 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 8 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
Last Updated: - Updated example sentences
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