The Percentage Method of Determining an Employee's Federal Income Tax

question 36

Multiple Choice

The percentage method of determining an employee's Federal income tax deductions _______ .

• A)allows payroll accountants to determine Federal income tax for the firm itself
• B)is used to promote complexity in payroll practices
• C)is less accurate than the results gained from using the wage-bracket method
• D)is used primarily for high wage earners and computerized payroll programs

---

Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Tariffs

are taxes imposed by a government on imported goods, designed to protect domestic industries and to generate revenue.

Government Revenue

The total income received by the government from taxes and non-tax sources used to fund public spending.