Withholding
Money an employer removes from a paycheck and sends to the government on the employee's behalf. It is a prepayment toward the year's tax, not the final bill.
Often confused with
- Deduction
- Withholding is money sent to a government; a deduction is any amount subtracted from pay, including benefit contributions.
Taught in
See also
5.1.A.2 · 5.1.C.3