Withholding Tax (Noun)
Meaning
Income tax withheld from employees' wages and paid directly to the government by the employer.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company is responsible for remitting withholding tax to the government on behalf of its employees.
- Withholding tax is typically deducted from an employee's salary and paid to the tax authority by the employer.
- Employers are required to withhold a portion of their employees' wages for income tax and remit it to the government.
- The amount of withholding tax varies depending on the employee's income level and the tax laws of the country.
- The employer is liable for penalties if they fail to remit withholding tax to the government on time.