1. to withhold too much money from someone’s paycheck for taxes
Usage: tax/payroll context

Examples

• The company overwitheld from my paycheck, so I received a large tax refund.
• If you overwithhold during the year, you’ll get money back when you file your return.
• The payroll department accidentally overwitheld taxes from several employees.
• It’s better to slightly overwithhold than to owe money at tax time.
• The new employee’s W-4 form caused the system to overwithhold significantly.