Withholding

Taxes your employer takes out of each paycheck and sends to the government for you.

Your employer withholds federal income tax based on the W-4 form you fill out, plus Social Security (6.2%) and Medicare (1.45%), and state and local taxes where they apply.

Withhold too little and you may owe at tax time; too much and you get a refund, which is your own money coming back. You can update your W-4 anytime your situation changes.