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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When Suozzi originally introduced his bill in 2021, the benefit was funded with a 0.6 percent payroll tax, roughly $350 a year for a median income worker. Howard Gleckman, Forbes.com, 8 May 2025 Consider Minnesota, which is launching its own leave program and payroll tax. The Editorial Board, Chicago Tribune, 1 May 2025 This doesn’t just mean the dollars for paying staff but includes other costs, such as payroll tax and workers compensation insurance. Cindy Carcamo, Los Angeles Times, 31 Dec. 2024 The number and size of payroll tax violations is up, and mere IRS penalties are not enough to stop the trend. Robert W. Wood, Forbes.com, 25 Apr. 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 May. 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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