Also known as: tax withholdings · withholding tax · withholding
Written by attorneys · grounded in primary & secondary sources — see below
A collection mechanism by which employers deduct estimated income tax liability from employees' wages and salaries and remit the amounts directly to the government.
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Torchlight Media pays its employees biweekly salaries. Each paycheck reflects a deduction for federal income tax calculated under the prescribed tables. Torchlight then forwards the withheld amounts to the IRS on the quarterly schedule. The employees receive credit for the withheld sums when they file their annual returns.
Tyler Taylor receives a large bonus from his employer. The company withholds federal income tax at the supplemental-wage rate and remits it to the IRS. Taylor later applies the withheld amount as a credit against his total tax liability on his annual return.
Talia Torres challenges an IRS regulation requiring immediate withholding on certain consulting income. The court finds the issues fit for decision because the regulation has been applied to Torres and creates concrete hardship by reducing her current cash flow.
True North Logistics receives an income-withholding order from another state directing it to deduct support from Tobias Thomas's wages. The company treats the order as regular on its face and begins remitting the withheld amounts to the designated agency.
Tanya Tang withholds a portion of her rent after the landlord fails to repair heating. She follows the statutory procedure for depositing the withheld funds and gives proper notice. The court later determines the withholding was justified to the extent the premises remained unsuitable.
Tracy Torres discovers a code violation after moving into her apartment. She withholds rent in the amount necessary to cover repairs and follows the prescribed notice requirements. The landlord's failure to cure permits the withholding until the premises meet habitability standards.
Employers withhold tax from wages throughout the year. Taxpayers with non-wage income must also make quarterly estimated payments to avoid underpayment penalties.
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The IRS retains the withheld amounts as a credit against any assessed liability. The taxpayer may still owe additional tax or receive a refund depending on the final calculation.
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Trustees of qualified plans must withhold twenty percent of a lump-sum distribution as prepaid income tax unless the recipient elects a direct rollover.
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…fine. §§ 9A.36.060(2) and 9A.20.021(1)(c). At the same time, Washington's Natural Death Act, enacted in 1979, states that the "withholding or withdrawal of life-sustaining treatment" at a patient's direction "shall not, for any purpose, constitute a suicide." Petitioners in this case are the State of Washington and its…