Backup withholding
In accounting, backup withholding means federal income tax a payer must withhold at 24% from reportable payments — contractor fees, interest, dividends, card settlements — when the payee has not given a correct TIN or the IRS has notified the payer to withhold. Deposited and reported on Form 945.
- Layer
- Lexicon
- Defined in
- Lexicon
- Nearby
- 4
Authority
This definition follows IRC §3406; IRS — Backup withholding.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Backup withholding, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
A payee who will not provide a TIN triggers 24% backup withholding.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- payroll withholding
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
Terms this one depends on
Also in Tax
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.