Withholding

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Withholding

What does Withholding mean?

Withholding is a segment of a worker's wages that is retained with regards to their paycheck and is not paid to the employee. In other words, withholding is the subtractions made for voluntary as well as involuntary deductions from an employee's salary. Those may be health coverage paid by both the parties i.e. employee as well as employer with a certain percentage input, social security, welfare schemes, retirement plans, other insurances, etc.