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Investments glossary

Withholding


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Quotes of the day:

a good tooth, gets no gold

— Severin Meiland

Withholding is the portion of an employee’s wages that is not included in his or her paycheck but is instead remitted directly to the federal, state, or local tax authorities. Withholding reduces the amount of tax employees must pay when they submit their annual tax returns. The employee’s income, marital status, number of dependents, and number of jobs all determine the amount withheld.1


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