| − | '''Withholding''' is the collection of a portion of [[wage]]s or other type of [[income]] by a payer at the time of payment in satisfaction of a payee's estimated [[tax]] obligation to an entity of [[government]]. | + | '''Withholding''' is the collection of a portion of wages to cover the [[income tax]] due. The goal is to make it easier for people to pay; it replaced a system whereby people paid all their income taxes for a given year on March 15 the following year. It was devised in 1943 to help pay for World War II by [[Milton Friedman]], at the time a liberal. |