withholding taxes (Meaning)
withholding taxes
a deduction (as from one's wages) taken at a source of income (as one's employer) as an advance payment of income tax, a deduction (as from wages, fees, or dividends) levied at a source of income as advance payment on income tax
Synonyms & Antonyms of withholding taxes
withholding taxes Sentence Examples
- Employees are typically required to pay withholding taxes, which are deducted from their paychecks.
- The amount of withholding taxes owed is determined by several factors, including income level and withholding allowances claimed.
- Employers are responsible for calculating, withholding, and remitting withholding taxes to the appropriate tax authorities.
- Failure to withhold taxes can result in penalties and interest charges.
- Self-employed individuals are responsible for paying estimated withholding taxes quarterly.
- Withholding taxes are not the same as income taxes; they are a prepayment of income taxes owed.
- The withholding tax rate is applied to gross income before any deductions are taken.
- The W-4 form is used by employees to indicate their withholding status and the number of allowances they are claiming.
- Withholding taxes help ensure that taxes are paid evenly throughout the year, rather than being owed in a lump sum at tax time.
- It is important to review withholding allowances annually to ensure that the correct amount of taxes is being withheld.
FAQs About the word withholding taxes
a deduction (as from one's wages) taken at a source of income (as one's employer) as an advance payment of income tax, a deduction (as from wages, fees, or divi
single taxes, hidden taxes,income taxes, poll taxes, direct taxes, property taxes, sales taxes, sin taxes, imposts, estate taxes
No antonyms found.
Employees are typically required to pay withholding taxes, which are deducted from their paychecks.
The amount of withholding taxes owed is determined by several factors, including income level and withholding allowances claimed.
Employers are responsible for calculating, withholding, and remitting withholding taxes to the appropriate tax authorities.
Failure to withhold taxes can result in penalties and interest charges.
