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Payroll Quiz Payroll

The term "cumulative method of withholding" refers to ______________.

the calculation of minimum wage rates
a federal income tax withholding method that applies a formula with both fixed and variable components to the wage amounts
a federal income tax withholding method that takes into account gross earnings, payroll period, marital status, and number of withholding allowances
A federal income tax withholding method in which the current withholding amount is determined by cumulative wages and the amount that has already been withheld

Answer:
A federal income tax withholding method in which the current withholding amount is determined by cumulative wages and the amount that has already been withheld

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