- Payroll Tax
- Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax.
Governments use revenues from payroll taxes to fund such programs as Social Security, healthcare, unemployment compensation, worker's compensation and sometimes local governments even require a small tax to maintain and improve local transportation.
On an employee pay stub, payroll taxes deducted are likely to be itemized.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Payroll tax — generally refers to two kinds of taxes: Taxes which employers are required to withhold from employees pay, also known as withholding, Pay As You Earn (PAYE) or Pay As You Go (PAYG) tax; and taxes which are paid from the employer s own funds and… … Wikipedia
payroll tax — ➔ tax1 * * * payroll tax UK US noun [C or U] ► ECONOMICS, TAX any tax that is based on employees pay, and is either paid by an employer or partly taken by an employer from what employees earn: »The proposed budget includes a 3% payroll tax on… … Financial and business terms
payroll tax — pay·roll tax n: a tax that is levied as a percentage of an employee s pay and is usu. paid by the employer Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. payroll tax … Law dictionary
payroll tax — payroll .tax n [U and C] a tax that is taken from someone s wages and given directly to the government →↑income tax … Dictionary of contemporary English
payroll tax — a tax levied against the amount of wages and salaries paid workers. [1980 85] * * * ▪ taxation levy imposed on wages and salaries. In contrast to income taxes, payroll taxes do not include income from capital sources such as dividends and… … Universalium
payroll tax — noun : a government or state tax levied on employers as a percentage of wages and salaries paid to employees compare withholding tax * * * a tax levied against the amount of wages and salaries paid workers. [1980 85] * * * payroll tax, a tax… … Useful english dictionary
payroll tax — A tax based on the total of an organization s payroll. The main function of such a tax would be to discourage high wages or over employment. The current employers Class 1 National Insurance contributions constitute such a tax … Big dictionary of business and management
payroll tax — noun (C, U) a tax that an employer must pay to the government in the US, and that is a percentage of the total wages they pay … Longman dictionary of contemporary English
payroll tax — /ˈpeɪroʊl tæks/ (say payrohl taks) noun a tax levied by a Government on employers, based on the salaries and wages they pay out … Australian English dictionary
payroll tax — / peɪˌrəυl tæks/ noun a tax on the people employed by a company … Dictionary of banking and finance