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

question 65

Multiple Choice

The percentage method of determining an employee's federal income tax deductions __________________.

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

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Definitions:

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