Withholding Definition

The amounts deducted from an employee’s paycheck for taxes, garnishments, and/or specified deductions (such as insurance premiums or retirement plans).

Withholding Extended Definition

Employers must withhold taxes and other deductions from each employee’s wages. All employees are subject to tax withholding and may opt for other withholdings, such as health insurance.

Tax withholding includes:

  • Federal income tax
  • State income tax
  • Local income tax
  • Social Security tax
  • Medicare tax

Related Articles
The Employer’s Guide to Federal Income Tax Withholding
What is Employer Withholding?
The Basics of Payroll Tax Withholding

Last Updated By

Rachel Blakely-Gray | May 01, 2023

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