payroll tax


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Payroll Tax

A tax in which an employer retains a certain percentage of an employee's wages or salary and gives it to the IRS or tax agency instead of the employee. This reduces or eliminates the possibility that the employee will spend his/her tax liability, and give the government cash flow to fund certain operations. See also: Withholding.

payroll tax

a TAX on a firm's total WAGE bill. The tax may be paid wholly by the firm or on some shared basis with employees. Insofar as such a tax alters the relative price of LABOUR and CAPITAL, it may result in the firm substituting capital for labour.
References in periodicals archive ?
Business owners and employers seeking more information about the Palaszczuk Government s payroll tax rebate should call 1300 300 734.
An alternative to raising the payroll tax rate would be to broaden the base.
By March of that year, the House had proposed a plan that included a payroll tax.
Automatically calculates federal and state payroll tax withholding.
It may be that the IRS has chosen this course of action, because of the political and public relations problems it would now face if it concluded for payroll tax purposes either (a) that the employment relationship does not actually terminate during the period of military service or (b) that the guarantee of reemployment required by USERRA or the actual provision of benefits during the employee's absence from civilian employment makes the differential payments subject to payroll taxation.
Such supplemental payments are funded from general tax revenues, not a payroll tax.
Chile faced the problem in 1981 and implemented a system under which the payroll tax comes out of the worker's check roughly the same way it does today in the US.
The income tax gets bigger as your income rises, but the payroll tax stops at $62,000.
4 percent payroll tax (with employees and employers paying half each).
Accero Software (formerly Cyborg Systems), a leading international provider of Payroll, Human Resources and Benefits Management solutions, and MasterTax, LLC, the leading independent provider of payroll tax compliance software, today announced a new partnership agreement that will enable Accero clients to seamlessly access tax filing software and services from MasterTax.
3 million in payroll tax rebates during the first two months of the Palaszczuk Government s scheme to encourage hiring apprentices and trainees.
23, 2013): Lane Transit District's payroll tax rate will increase to 0.