Withholding Tax
The portion of an employee’s income deducted and remitted by the employer directly to tax authorities. Withholding taxes are paid federally and may also be remitted to state and local tax authorities.
- Withholding: Definition, Tax Rules, Federal vs. State: https://www.investopedia.com/terms/w/withholding.asp
- Pay As You Earn (PAYE): Definition and Examples: https://www.investopedia.com/terms/p/pay-as-you-earn.asp