payroll tax

noun

1. a tax levied against the amount of wages and salaries paid workers.

Word History and Origins

Origin of payroll tax¹

First recorded in 1980–85

Example Sentences

There are many suggestions floating around Washington on how to fix the program’s funding issues, including raising the payroll tax, eliminating the income cap on high earners or adjusting the types of benefits offered.

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Their premiums are exempt from federal income tax and payroll tax.

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Cato’s “Leninist” strategy paper explicitly advocated encouraging workers to opt out of Social Security by promising them a payroll tax reduction if they put the money in a private account.

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It’s removing the income cap on the payroll tax, which tops out this year at $176,100 in wage income.

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At Social Security’s inception, the payroll tax was set at a rate that would cover about 92% of taxable wage earnings.

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