| that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government. |
with·hold·ing  (wĭth-hōl'dĭng, wĭth-)  n. A portion of an employee's wages or salary withheld by the employer as partial payment of the employee's income tax. Also called withholding tax. |
The tax withheld (or deducted) directly from one's paycheck.
Withholding Tax
1. Income tax withheld from employees' wages and paid directly to the government by the employer.
2. A tax levied on income (interest and dividends) from securities owned by a non-resident.
Investopedia Commentary
1. The amount withheld is a credit against the income taxes the employee must pay during the year.
2. Tax is deducted not only from dividends, but from other income paid to non-residents of a country.
Related Links
Tax Tips For The Individual Investor
See also: Dividend, Income Tax, Internal Revenue Service - IRS, W-2 Form, W-4 Form, Withholding, Withholding Allowance