Category: Employee Withholdings
What are Payroll Withholdings?
Payroll Withholdings refer to mandatory taxes and elective reductions applicable to employees' wages. Default withholdings include federal and state taxes, as well as Social Security and Medicare taxes which are preset at the current rates. Other examples of payroll withholdings include court-ordered garnishments for child support or other debts, voluntary contributions to company-sponsored retirement plans or insurance programs, and other items such as union dues.