ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross Income
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Net Income
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Both Gross and Net Income
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None of the above
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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: -Alternatively, you can calculate your gross income as (1) your monthly salary before taxes or (2) the number of hours you will work in a given month multiplied by your hourly pay rate.
Detailed explanation-3: -Gross is an employee’s total earnings, such as wages or salary, while net pay is their earnings minus payroll deductions, including taxes, benefits and garnishments.
Detailed explanation-4: -Gross pay is how much employees earn before taxes and other withholdings, whereas net pay is the amount of money employees actually take home after all payroll deductions. For example, if an employee makes $8, 000 gross per month and has $1, 700 deducted for taxes and benefits, that individual’s net pay would be $6, 300.