Glossary definition

What is withholding?

Withholding refers to the percentage of an employee’s earnings that are automatically withheld, meaning they are taken from their paycheck and paid directly into government mandated tax collections. The most common mandatory tax withheld is PAYE and UIF. The South African Revenue Service, or SARS, defines withhold practices in South Africa. All legally employed individuals working in South Africa are subject to withholding taxes.

A more general withhold definition is simply the suppression of a thing, tangible or intangible, from an individual or entity.

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