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Tax

Tax Withholding

Income tax your employer deducts from each paycheck and sends to the government on your behalf.

What does tax withholding mean?

Withholding is a prepayment of your annual tax, set by your W-4. Too little and you owe at tax time; too much and you get a refund — essentially an interest-free loan to the government.

Put it to use
Payroll Deductions Calculator Use this calculator to help you determine the impact of changing your payroll deductions. Payroll Net to Gross Calculator Determine the gross paycheck needed to provide a required net amount.
Related terms
FICATaxable Income
All glossary terms