ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Isaiah works for the summer at a technology company and has a salary for the summer of $4, 000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $3, 500. Which of the statements below is correct?
|
|
His gross pay is $3, 500 and net pay is $4, 000
|
|
|
His gross and net pay are $4, 000
|
|
|
His gross and net pay are $3, 500
|
|
|
His gross pay is $4, 000 and net pay is $3, 500
|
Explanation:
Detailed explanation-1: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Detailed explanation-2: -Net pay means take-home pay or the amount employees earn after all payroll deductions are subtracted from their gross pay.
There is 1 question to complete.