Human Resources · Odoo glossary

Tax Withholding

Tax withholding is the deduction of tax from a payment before the recipient receives the net amount.

Definition

In general ERP practice

Tax withholding is the deduction of tax from a payment before the recipient receives the net amount. In payroll, the employer calculates and records the employee tax withheld under the applicable rules.

In Odoo

Odoo Payroll’s localized salary rules provide the closest calculation mechanism. Review the country-specific payroll localization and employee inputs; a general salary rule is not proof that all jurisdictions’ withholding and filing requirements are supported.

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