Wage Withholding

Garnishment
Garnishment is a legal process where a court orders an employer to withhold all or part of an employee's wages, directing the funds to the court or a party that has secured a legal judgment against the employee. This can occur in situations such as divorce settlements or debt repayment.
Holdback Pay
Holdback pay refers to wages or salary withheld from an employee by the employer until a specific condition is fulfilled. This may happen due to the time necessary for payroll computation or as security against cash advances or tools lent to an employee.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.