Hello

Withholding

See also

Tax Withholding in the American legal Encyclopedia

Backup Withholding Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Backup Withholding in a way that is easy for anybody to understand: Payors of interest, dividends and other reportable payments must withhold income tax equal at a rate equal to the fourth lowest rate applicable to single filers if they fail to supply a federal id # or if they fail to certify that they are not subject to it.

Withholding Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Withholding in a way that is easy for anybody to understand: Amount withheld or deducted from employee salaries by the employer and paid by the employer, for the employee, to the proper authority.

United States Tax Concept of Withholding

The amount taken from your wages or other income to pay your income and social security taxes for the year. The amount withheld is based on the size of your salary and the Form W-4 you file with your employer. Taxes are most commonly withheld from wages, but they may also be withheld from other income, such as dividends and interest. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding. You are credited for these taxes when you file your return.