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

Question

Quizplus · Accepted Answer

The percentage method is primarily used for high wage earners and computerized payroll programs. It calculates taxes based on a percentage of the employee's wages, rather than using a table like in the wage-bracket method. While it may not be as accurate as the wage-bracket method, it is still widely used due to its convenience and efficiency.

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