Tax withholding is the amount of money deducted from an employee's paycheck and paid to the government as income tax. There are several synonyms for tax withholding, including payroll tax, income tax withholding, and wage tax. Payroll tax refers to the portion of an employee's wages that are withheld for federal, state, and local taxes. Income tax withholding is the amount of tax taken from an individual's pay based on their tax bracket. Wage tax is a flat rate applied to an employee's gross earnings that goes towards federal and state taxes. Regardless of the terminology used, tax withholding is an essential aspect of ensuring that individuals and businesses fulfill their tax obligations.