HR Glossary

What is Withholding Tax?

Income tax that employers are legally required to deduct from employee wages and remit directly to federal, state, and local tax authorities on the employee's behalf.

Why it matters in hiring

Withholding Tax comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with W

• W-4 Form
• Walk-In Interview
• WARN Act
• Wellness Benefits
• Work Authorization
• Work Health and Safety Act (Australia)
• Work-Life Balance
• Worker vs Employee

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.