Withholding is the amount deducted from an employee’s wages by the employer for taxes, benefits, or other obligations, remitted to the appropriate authorities.
- What is withholding?
Answer: It is the deduction from wages for taxes or benefits. - What are examples?
Answer: Examples include federal tax or health premiums. - Who determines it?
Answer: It is based on W-4 forms and tax rates. - What are the benefits?
Answer: It ensures tax compliance and benefit funding. - How does HR manage it?
Answer: HR calculates and remits withholdings.
