You generally must withhold 24% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN) prior to payment. This withholding is referred to as "backup withholding." Publication 15,(Circular E),Employer's Tax GuidePDF, provides additional information regarding which payments are subject to backup withholding. Note: From 2004 through 2017, the backup withholding rate was 28% Return to List of FAQs
