withholding tax
withholding tax A portion of income tax that is subtracted from salary, wages, dividends, or other income before the earner receives payment. ? The most common example is the income tax and social-security tax withheld by an employer from an employee’s pay. [Cases: Internal Revenue 4849; Taxation 1100. C.J.S. Internal Revenue ¡ì¡ì 740¨C741; Taxation ¡ì …