withholding tax

Popular Terms
Employee income tax (such as PAYE) and other government imposed deductions from dividends, salaries, wages, and other incomes. Withholding taxes are levied at the point of disbursement of incomes, and are passed on to the government by the entities collecting them.

Use 'withholding tax' in a Sentence

It can be a shock when you get your first paycheck and expect to make a certain amount, only to discover withholding taxes have been applied by the government which makes your take home pay smaller.
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The withholding tax was an important factor in getting a full understand of our current and future financial health picture.
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You must always be sure to take out the correct withholding tax so that everything is done above board with the legistlation.
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