withholding tax(redirected from Retention tax)
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with·hold·ing tax(wĭth-hōl′dĭng, wĭth-)
A portion of an employee's wages or salary withheld by the employer as partial payment of the employee's income tax. Also called payroll tax, withholding.
1. (Banking & Finance) tax deducted at source from income, esp from dividends, paid to nonresidents of a country, which may be reclaimed if a double-taxation agreement exists between the country in which the income is paid and the country of residence of the recipient
2. (Industrial Relations & HR Terms) US a portion of an employee's tax liability paid directly to the government by the employer
that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government. Also called with•hold′ing.