underwithheld

underwithheld definition - business

underwithheld

Money withheld by an employer from an employee's paychecks that is insufficient to cover the employee's income tax liability. Being underwithheld means the employee will be required to pay taxes when his or her annual tax return is filed. See also underpayment penalty.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.