backup withholding

Definition

An IRS procedure designed to ensure that a taxpayer who does not have a Social Security number or tax identification number will still have taxes withheld on his/her income.

Use backup withholding in a sentence

I was glad there was something known as backup withholding, because I did not want to have anything done to me that was bad.

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Pablo is waiting on his citizenship in the United States and he does not have a social security card, therefore the Internal Revenue Service has applied Backup Withholding to his pay checks.

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When we hired our babysitter, she surprised us by revealing that she did not have a Social Security number and would be subject to backup withholding to pay her taxes.

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