HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Taxes » withholding allowance

Withholding Allowance

Definition
The amount of exemptions that an employee claims on his/her W-4 form. Employers use this information to determine how much money should be deducted from the individual's pay check for federal and state tax purposes. The more allowances that the individual claims on the form, the less money that will be deducted from each pay check. If an individual claims too many exemptions, he or she may have a tax liability due at the end of the year.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.