Withholding/withhold
For payroll tax purposes, withholding is the mechanism that taxing authorities use to compel employers to collect taxes owed by their employees on their wages and other compensation. Withholding essentially requires employees to pay their taxes on a "pay-as-you-go" basis. For example, the object of income tax withholding is to collect currently, as wages are paid, most of the income tax liability employees will report on their annual personal tax return from having received the wages. Part and parcel with the obligation to withhold tax is the obligation to timely deposit the withheld amounts with the appropriate authorities. Although withheld taxes represent amounts owed by your employees, you effectively become personally liable for those taxes if you fail to properly withhold or deposit them.
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