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
Employers were hit with an increase to the National Insurance (NI) payroll tax while also paying higher minimum wages.
—
Robert Olsen, Forbes, 6 Jan. 2025
Under current law, the Social Security payroll tax is capped at $168,600.
—Alexander Bolton, The Hill, 2 Jan. 2025
The payroll tax cap also means higher earners are contributing a smaller percentage of their incomes.
—Suzanne Blake, Newsweek, 6 Nov. 2024
Early-stage companies that have yet to make profits can use the R&D tax credit to offset payroll tax during the first five years or accumulate the same and add value to the business.
—Prasanna Kumar, Forbes, 20 Dec. 2024
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Robert Olsen, Forbes, 6 Jan. 2025
Under current law, the Social Security payroll tax is capped at $168,600.
—Alexander Bolton, The Hill, 2 Jan. 2025
The payroll tax cap also means higher earners are contributing a smaller percentage of their incomes.
—Suzanne Blake, Newsweek, 6 Nov. 2024
Early-stage companies that have yet to make profits can use the R&D tax credit to offset payroll tax during the first five years or accumulate the same and add value to the business.
—Prasanna Kumar, Forbes, 20 Dec. 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 20 Jan. 2025.
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