What is Withholding?
Answer:
Withholding is that portion of your paycheck
that your employer “withholds” and sends to the state and federal government as a down payment on your income tax.  The amount they hold back is determined by the number of dependents you claim and the subsequent tax category you put yourself in when you fill out your W-4 form.

If you claim to have ten dependents the government assumes you will pay less tax at the end of the year so your employer withholds less.  If you fill out your form as a single person with no dependents, you will generally owe more taxes and your employer withholds more.

Withholding can also refer to the total amount of deductions your employer takes off the top of your weekly earnings, such as payment for union dues, health insurance or contributions to the United Way in addition to your tax withholding.
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