Question

The primary difference between the percentage method and the wage-bracket method of withholding federal income tax is:

a.they are simply different ways to calculate tax; both consider marital status and take into account the standard deduction.

b.the percentage method does not take into account the standard deduction.

c.the wage-bracket method is much more complicated.

d.the percentage method does not differentiate between married and unmarried.

Answer 1

Your required answer is option a

Explanation:

Percentage method and wage-bracket mthod of withholding federal income tax both use different way to calculate tax and both consider marital status and take into account the standard deduction.

Generally percentage method helps in organization where payroll system is automated whereas where payroll system is mannual there wage-bracket method is more helpful.

I hope this clear your doubt.

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