What is income withholding tax?

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Income withholding tax is the amount of federal income tax Remote withholds from an employee’s salary and pays directly to the government. The amount of income tax Remote withholds from your regular pay depends on two things:

  • The amount you earn.
  • The information you provide on the Form W–4.

In the United States, the withholding and state taxes differ depending on which state the employee lives in. 

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