Withholding

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Withholding

Used in the context of securities, the illegal practice of a public offering participant keeping some shares in a private account or with a family member, employee, or dealer to profit from the higher market price of a hot issue.
Used in the context of taxes, the withholding by an employer of a certain amount of an employee's income in order to cover the employee's tax liability. Also used to refer to the withholding by corporations and financial institutions of a flat 10% of interest and dividend payments due to security holders.

Withholding

The act or practice of not giving a certain percentage of money that otherwise belongs to a person. Withholding must occur in accordance with appropriate laws and may not be arbitrary. Withholding is most common in taxes, in which an employer retains a certain percentage of an employee's wages or salary and gives it to the IRS instead of the employee. Likewise, a manual rollover to an IRA is subject to a 20% withholding. Courts may order withholding for reasons such as child support or alimony. See also: Overwithholding.

withholding

1. The holding back of a portion of wages, dividends, interest, pension payments, or various other sources of income for payment of taxes to the U.S. Treasury. See also backup withholding.
2. The illegal holding back of a portion of securities allocated as part of a new issue to a member of an underwriting syndicate. The underwriter may wish to keep the securities or resell them to a designated party so as to profit from an expected price rise soon after the issue has been offered to the public.

Withholding.

Withholding is the amount that employers subtract from their employees' gross pay for a variety of taxes and benefits, including Social Security and Medicare taxes, federal and state income taxes, health insurance premiums, retirement savings, education savings, or flexible spending plan contributions, union dues, or prepaid transportation.

Contributions to tax-deferred savings plans are withheld from your pretax income, as are amounts you put into tax-free flexible spending and prepaid transportation accounts. Those amounts reduce the taxable salary that your employer reports to the IRS.

References in periodicals archive ?
1474-5(a)(1) to allow a refund or credit to a taxpayer for an overpayment only to the extent the withholding agent has deposited (or otherwise paid over) the amount withheld and the amount exceeds the taxpayers tax liability, except as otherwise provided by Sec.
If the application is still pending with the IRS on the date of sale, the transferee must withhold the correct amount of tax, but the amount withheld does not have to be reported and paid immediately.
The tables will take into account the fact that too much money was withheld from the paychecks that were issued prior to the tax cuts, also just like in 2001.
470 billion liras of income tax were withheld between January and March.
This section mandates that employers who withheld $12,000 or more during the look-back period for the calendar year must make semi-weekly payments of the amounts withheld during each remaining quarter of that calendar year and for the succeeding calendar year.
As portions of individuals and small businesses' income are withheld for as long as 15 months, cash flows will drop and opportunities to invest will go down.
From these sources Pernick develops his reading of the complex ways that profession, class, gender, and religious and political affiliation correlated with stances on whether treatment should ever, or sometimes, be withheld from newborns, or whether positive steps should be taken to end the life of some infants.
Notify the doctor when a medication is withheld without an order, as can happen when a patient has a bad reaction or develops a swallowing disorder.
The withheld documents, though, caused more enduring problems.
Information regarding the amount of Canadian tax withheld in 2005 should be determined from the unitholders' own records or through their stockbrokers or other intermediaries.
Q: When there are multiple sellers, how much is withheld from each?
71-52 in concluding that employment taxes were not required to be withheld or paid in connection with the exercise of ISOs and ESPP options, or the disposition of the stock received on exercise of such options.