Courtesy Withholding Definition

Courtesy withholding is an optional service where an employer withholds and remits an employee’s local residence taxes.

Courtesy Withholding Extended Definition
Employees living in one city and working in another may be required to pay taxes in both cities. Instead of paying taxes individually, some employers offer the option to pay both taxes at once by withholding the due amount.

With courtesy withholding, employees don’t need to pay city taxes separately, as the employer pays the amount due on their behalf.

Courtesy withholding is an optional benefit employers can choose to offer as a convenience to their employees. Not all employers offer courtesy withholding.

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Last Updated By

Rachel Blakely-Gray | Feb 16, 2023