Tax Withholding
/ˈtæks wɪðˌhoʊldɪŋ/
Definitions
- (n.) The practice of an employer or other payer deducting tax from payments made to an employee or payee and remitting it to the tax authorities.
The company is responsible for tax withholding on employee wages to comply with IRS regulations.
Forms
- tax withholdings
Related terms
See also
Commentary
Tax withholding is a preventive tax collection mechanism to ensure government revenue by collecting taxes at the source of payment rather than relying on periodic self-reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.