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 ?
Figure A2 Percentage of Total Taxes Withheld on U.S.-Source Income Paid to Foreign Persons Under Chapter 3, as Reported on Form 1042-S, by Country of Foreign Recipient, Calendar Years 2014 and 2015 2014 $16.3 billion 2015 $18.4 billion Cayman Islands 14.1 14.0 Luxembourg 10.5 11.2 Canada 10.3 8.7 United Kingdom 7.4 6.5 Swilzeriand 6.3 5.3 Ireland 5.6 5.3 Australia 4.1 3.5 Japan 2.7 2.4 Germany 2.5 2.4 British Virgin Islands 2.1 2.1 Mexico 1.8 2.0 Bermuda 2.0 1.7 Otner countries 30.6 34.9 NOTE: Form 1042-S, Foreign Person's U.S.-Source Income Subject to Withholding.
The amount that must be withheld in connection with the sale of US real property by a foreign person can be decreased (or eliminated) pursuant to a withholding certificate issued by the IRS.
The exceptions would treat a claimant that is the beneficial owner of the withheld payment as if a full deposit had been made, but only for purposes of a claim for refund or credit of an amount withheld under chapter 3 or 4.
As with most withholding taxes on payments made to foreign persons, the withholding agent needs to be aware of its withholding, remitting, and reporting obligations ahead of the transaction, as recouping any tax not originally withheld during the transaction is exceptionally difficult, especially in situations involving gross basis withholding.
In 2009, the Turkish government's income from taxes withheld was 32.605 billion liras.
The department also adopted section 100.7370 prescribing penalties relating to the reporting and payment of income tax withheld. An employer who fails to deduct and withhold the required amount of tax is liable for any underpayment of tax by the employee, up to the amount the employer failed to deduct and withhold.
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.
In 1915, a physician's public announcement that he had withheld lifesaving treatment from a seriously malformed newborn prompted an outburst of press coverage and commentary from individuals across the American spectrum of political and social beliefs.
If a medication is to be withheld, write a note to that effect in clear view on the medication record.
The Remmelink study counted as cases of involuntary euthanasia any instance in which life-support systems were withheld or withdrawn without the direct and explicit consent of the patient (as discussed above, a practice which is already far more widespread in the United States).
Withholding of Federal income taxes from wages has existed since World War II and is required by the Internal Revenue Code.(1) The Code(2) and Regulations(3) authorize the Secretary of the Treasury to establish withholding tables to be used by employers to determine the amount of Federal income tax to be withheld. These are published each year in "Circular E, Employer's Tax Guide."
When the apparent leader of the group, Theodore Olson, who until 1984 was assistant attorney general in the Office of Legal Counsel, wrote to the president on October 25, 1982 advising that the documents be withheld, his final remark was, "The Administrator [of EPA] concurs in this recommendation.' When told of the move to claim executive privilege, Burford protested against it, and there is some question as to whether she was even adequately consulted before the memorandum was sent.