Payroll Withholding Definition
Payroll withholding is the dollar amount that employers are required to withhold from their employees’ gross pay.
Payroll Withholding Extended Definition
Employers are required by the United States and some state tax systems to withhold tax from employees’ gross pay.
Included in this amount can be Social Security tax, federal income tax, court-ordered payments, state income tax, and other employee-authorized amounts. These withheld funds are referred to as payroll withholding.
Last Updated By
Rachel Blakely-Gray | Apr 28, 2023