Payroll Tax means a tax an employer withholds or pays on behalf of their employee based on the salary of the employee. The tax that employers withhold from the wages, is also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG). The other type of Payroll Tax is paid from the employer's own funds as a fixed charge or a proportion of the employee's salary.
Additional meaning of Payroll Tax:
In the U.S., both state and federal authorities collect some form of payroll tax.