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
Federal payroll tax — a flat tax split between employers and employees to fund Social Security and Medicare — will still apply to any earnings.
—
Natalie Wu, CNBC, 9 July 2025
The revenue shortfall experienced by Social Security is almost entirely the product of rising economic inequality in the U.S. At Social Security’s inception, the payroll tax was set at a rate that would cover about 92% of taxable wage earnings.
—Michael Hiltzik, Los Angeles Times, 20 June 2025
Following an act of Congress, a range of changes were made to how Social Security is funded, including accelerating payroll tax increases, gradually raising the retirement age, and making a portion of Social Security benefits taxable.
—Aliss Higham, MSNBC Newsweek, 19 June 2025
The trustees recommended Congress increase the standard payroll tax rate or reduce Medicare spending to address future shortfalls.
—Aris Folley, The Hill, 18 June 2025
See All Example Sentences for payroll tax
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Natalie Wu, CNBC, 9 July 2025
The revenue shortfall experienced by Social Security is almost entirely the product of rising economic inequality in the U.S. At Social Security’s inception, the payroll tax was set at a rate that would cover about 92% of taxable wage earnings.
—Michael Hiltzik, Los Angeles Times, 20 June 2025
Following an act of Congress, a range of changes were made to how Social Security is funded, including accelerating payroll tax increases, gradually raising the retirement age, and making a portion of Social Security benefits taxable.
—Aliss Higham, MSNBC Newsweek, 19 June 2025
The trustees recommended Congress increase the standard payroll tax rate or reduce Medicare spending to address future shortfalls.
—Aris Folley, The Hill, 18 June 2025
See All Example Sentences for payroll tax
Cite this Entry
“Payroll tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/payroll%20tax. Accessed 23 Jul. 2025.
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