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Glossary > W > "Withholding" Definition

Withholding

Any tax that is taken directly out of an individual"s wages or other income before he or she receives the funds.

In the US, this refers to a deduction from an employee"s salary by an employer for federal, state and local tax liabilities.

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Withholding - Any tax that is taken directly out of an individual"s wages or other income before he or she receives the funds.

In the US, this refers to a deduction from an employee"s salary by an employer for federal, state and local tax liabilities.

Withholding : any tax that is taken directly out of an individual"s wages or other income before he or she receives the funds.

in the us, this refers to a deduction from an employee"s salary by an employer for federal, state and local tax liabilities.