payroll tax

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Related to Payroll taxes: Social Security Tax

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 ?
In Feist,(14) for example, the taxpayer learned about the delinquent payroll taxes shortly before he sold the company and arranged to have the new owners pay the taxes.
A repetition of the last round of payroll taxes might not be the best, or the only, way to go.
As the above discussions illustrate, there is a very real incentive for responsible persons to make sure trust fund payroll taxes are paid.
In 2010, Congress enacted legislation, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 which reduced employee payroll taxes and self-employment taxes by two percentage points.
located in Canton, Ohio, helps simplify employee management with online software applications for Payroll and Employee Payroll Taxes.
In 2000, he collected $2 million in payroll taxes on behalf of his clients, but failed to remit the money to the IRS.
Exclusive control is not required, and delegation of the authority to remit the payroll taxes does not relieve someone of section 6672 liability.
Over a quarter of payroll taxes are owed by businesses with more than 3 years (12 tax quarters) of unpaid payroll taxes.
Meanwhile payroll taxes have risen for working Americans who, because they pay little or no income tax, are ineligible for a range of tax breaks from the $1,O00-a-year child tax credit to the home mortgage interest deduction.
In 2018, when my daughter is 31, Social Security will start spending more in benefits each year than it takes in from payroll taxes.
However, payroll taxes will not cover the program's hospital costs this year, making it necessary to rely on interest earnings from Medicare's $256 billion trust fund.