Determining the income tax to be withheld using a tax table is referred to as what?

Determining the income tax to be withheld using a tax table is referred to as the wage bracket method. This approach utilizes specific tables that outline various income ranges and the corresponding tax amounts that should be withheld based on the employee's earnings and filing status.

The wage bracket method is particularly beneficial for employers as it streamlines the process of calculating withholding for employees with straightforward compensation structures. By referring to a tax table, employers can quickly ascertain the exact amount to withhold without complex calculations.

In contrast, the percentage method involves calculating withholding based on a percentage of an employee's earnings, which can be adjusted based on other variables such as payroll frequency. The fixed rate and average rate methods do not specifically pertain to the use of tax tables when determining withholding amounts, which is why the wage bracket method is the correct terminology in this context.