withholding

Definition

An amount of an employee's income that an employer sends directly to the federal, state, or local tax authority as partial payment of that individual's tax liability for the year. When a person starts a new job, he/she is required to fill out a W-4 form on which he/she can indicate his/her filing status and the number of allowances he/she is claiming.

Use withholding in a sentence

She was withholding her affection from him, yet he did not know why and thus felt very sad and rejected.

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You may want to make sure that you have really good accountants that know how much of a withholding to always take.

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The withholding was higher than expected so the employee carefully examined the nature of and reasons behind the tax withholding.

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1040-ES (NR) Form overwithholding