withholding taxwith·hold·ing tax
the amount of income tax withheld, as payment in advance, from employees' wages or salaries
A portion of an employee's wages or salary withheld by the employer as partial payment of the employee's income tax. Also called payroll tax, withholding.
(plural withholding taxes)
- A withholding, a tax withheld from employees' salary and paid to the government. The withheld amount is considered a credit in final taxation.