Employee Tax Withholding

Employee tax withholding refers to the process where an employer deducts a portion of an employee's income to pay federal, state, and local taxes on their behalf. This means that instead of receiving their full paycheck, employees see a smaller amount after taxes are taken out. The withheld amount helps ensure that employees meet their tax obligations throughout the year, rather than paying a large sum at tax time. These withholdings can include income tax, Social Security, and Medicare taxes, and are based on the employee's earnings and information provided on their tax forms.