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 ?
Carna Blau, Empagio's manager of Payroll Tax Operations, will host the one-hour Webcast.
The politics of the payroll tax cut create a risk that it will be made permanent.
It would be easy to conclude, in fact, that most of official Washington doesn't even know the payroll tax exists.
71 percent paid by employers, the payroll tax for transit would begin to approach a full percentage point of all labor costs.
By March of that year, the House had proposed a plan that included a payroll tax.
Integration of the Vertex solution and Oracle Fusion Payroll is said to provide Oracle users with increased efficiency, reduced risk and compliance with payroll tax regulations.
An example of the IRS's pursuit of potential payroll tax dodgers includes the $319 million assessment (including interest and penalties) against FedEx for claiming its drivers were contractors rather than employees.
Moreover, the higher payroll tax would not be sufficient in the long run.
The party that opens up all income tax breaks to all payroll tax payers might be able to consolidate the next majority in American politics, a majority built on center-left, tax-cut Reaganism for the masses, not the elites.
This reminds me that I want to embrace a proposal by the New America Foundation's Maya MacGuineas to replace the payroll tax with a tax on consumption.