In payroll, which term refers to earnings before deductions?

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Multiple Choice

In payroll, which term refers to earnings before deductions?

Explanation:
Earnings before deductions are called gross pay. This is the total amount you earn from salary, overtime, bonuses, or commissions before any withholdings such as taxes, Social Security, health insurance, retirement contributions, or other deductions are taken out. Net pay is what you take home after these deductions. While wages can refer to earnings in general, the specific term that denotes pre-deduction amounts is gross. Benefits, on the other hand, are non-cash or fringe offerings that add value but aren’t the pre-deduction earnings themselves.

Earnings before deductions are called gross pay. This is the total amount you earn from salary, overtime, bonuses, or commissions before any withholdings such as taxes, Social Security, health insurance, retirement contributions, or other deductions are taken out. Net pay is what you take home after these deductions. While wages can refer to earnings in general, the specific term that denotes pre-deduction amounts is gross. Benefits, on the other hand, are non-cash or fringe offerings that add value but aren’t the pre-deduction earnings themselves.

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