What is the term for the money withheld from an employee's paycheck for tax purposes?

The term that accurately describes the money withheld from an employee's paycheck for tax purposes is "payroll withholding." Payroll withholding refers specifically to the amounts taken from an employee's gross pay for various taxes, which can include federal and state income taxes, Social Security, and Medicare.

This withholding is essential for ensuring that employees meet their tax obligations over the course of the year, rather than having to pay a large sum at the end. It is also beneficial for employers, as it simplifies the process of collecting and remitting taxes to the appropriate authorities.

While "payroll tax" refers to taxes paid by both employees and employers based on payroll, it does not specifically indicate the amounts withheld from an employee's paycheck. "Salary deduction" typically refers more generally to any amounts deducted from an employee's gross pay for various reasons, not just taxes. "Tax exemption" is a status that reduces the amount of income that is subject to taxation and does not pertain directly to the withholding process.