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SESK: Stuff Everyone Should Know · sesk.info/teen-withholding-meaning

Money your employer takes from your pay and sends to the government for your taxes is called what?

That is withholding, a pay-as-you-earn tax.

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  1. A deductible
  2. Withholding ✔
  3. A garnishment fee

Why: Employers withhold money from your paycheck and deposit it for the government. It is credited against what you owe when you file your tax return.

Huh, didn't know that: Employers withhold federal income tax, Social Security and Medicare, and in some places state and local income tax.

The dad joke
After I spoke with the tax auditor, I slept like a baby. I woke up every hour and cried.
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References

Answer: Withholding. Employers withhold money from your paycheck and deposit it for the government. It is credited against what you owe when you file your tax return.

  1. CFPB Youth Financial Education Glossary www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/glossary
    Money that employers withhold from employees’ paychecks. This money is deposited for the government
    Checked 2026-10-10.

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