A withholding tax is the amount an employer withholds from an employee's wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year.
Compensation subject to withholding includes wages, commissions, fees, salaries, bonuses, vacation allowances, back pay, tips and retroactive wage increases. Wages also include any other kind of remuneration for or compensation attributable to services performed by an employee for his employer. Compensation subject to Federal withholding is subject to West Virginia withholding.