Withholding Deduction

Definition: Any amount subtracted from an employee's gross pay before arriving at net pay. Withholding deductions include required deductions mandated by law (…

Any amount subtracted from an employee's gross pay before arriving at net pay. Withholding deductions include required deductions mandated by law (federal and state income tax, FICA) and voluntary deductions elected by the employee (health insurance premiums, retirement contributions, union dues).