withholding tax
Employer-retained levy
Withholding tax is money an employer deducts from wages and sends directly to the government as prepayment toward the employee's income tax obligation.
The amount withheld depends on earnings and exemptions claimed on tax forms.
At year's end, taxpayers reconcile what was withheld against what they actually owe—receiving a refund if too much was withheld, or paying the difference if too little.
- income taxGovernment charge on earnings
- payroll taxWithholding from worker wages
- payroll deductionSum subtracted from wages
- capital gains taxLevy on asset sale profits
- double taxationRevenue assessed twice
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withholding taxtax refund
Returned excess withholding
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