Finance & Banking

Withholding

wɪðˈhoʊldɪŋ

noun

What does Withholding mean?

Tax taken from each paycheck automatically.

Example sentence

"Adjust your withholding on the W-4 form."

American usage tip

Too little withheld = owing taxes in April.

Related Finance & Banking words

Cashback
A percentage of spending returned to you.
W-2
The annual wage form employers send for taxes.
Compound interest
Interest earning interest over time.
Emergency fund
Savings covering 3-6 months of expenses.
Zelle
A free instant bank-to-bank payment app.
APR
Annual Percentage Rate — yearly loan/credit cost.
Net worth
Total assets minus total debts.
Hard inquiry
A credit check that slightly lowers your score.

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