payroll tax withholding

Payroll tax withholding is the process by which an employer deducts a portion of an employee’s wages to cover taxes owed to government authorities. These taxes typically include Social Security, Medicare, and income taxes. The employer then remits these withheld amounts to the government on behalf of the employee. This system ensures that taxes are collected gradually throughout the year rather than in a lump sum at year-end. It also helps employees meet their tax obligations without the burden of paying large sums all at once, supporting public programs like Social Security and healthcare.