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

The program, which will go into effect in 2026, will be funded by a payroll tax shared between workers and employers.

From Los Angeles Times

To help make up for the increase, California is removing the ceiling on the payroll tax, requiring higher-income earners to contribute the same 1.1% of their earnings as everyone else rather than capping the tax when their wages reach $153,164.

From Los Angeles Times

Eyeing a potential move to Brisbane, Calif., Twitter decided to stay in the city after San Francisco officials approved a temporary payroll tax break in 2011 that could save the company millions of dollars.

From Los Angeles Times

It exempted Twitter, Zendesk and other companies located in certain Mid-Market buildings from San Francisco’s 1.5% payroll tax for any employees they added.

From Los Angeles Times

The payroll tax included stock-based compensation, which could deter startups like Twitter that were about to go public from staying in the city.

From Los Angeles Times