Payroll savings plan Definition
A plan that may be offered by employers to their employees that permits employees to authorize regular deductions from their pay to buy bonds. Each deduction need not equal the purchase or issue price of a savings bond. Deductions may be accumulated by the employer or a third-party service organization on its behalf until sufficient money is on hand to buy a bond of the denomination selected by the participating employee. Participation in a payroll savings plan and offering such a plan are entirely voluntarily.