what are federal withholdings
Federal withholding refers to the federal payroll taxes that employers are required to withhold from employeesâ wages. Identification Federal income tax is a form of tax that the federal government levies on personal income. Social Security and Medicareâalso called FICAâ taxes are forms of payroll taxes that the federal government also imposes on income. Employees pay these federal payroll taxes via the withholding process.