What is the total amount of an employee's earnings before deductions called?

What is the total amount of an employee's earnings before deductions called?

• A. Net pay
• B. W4
• C. Deductions
• D. Gross pay

Answer: (D)

Gross pay is the total amount an employee earns before any deductions are taken out. It includes base wages or salary plus overtime, bonuses, and other compensation. Net pay, by contrast, is what you take home after deductions such as taxes and benefits are subtracted. The W-4 is a form used to determine how much tax to withhold, not a measure of earnings, and deductions are the amounts removed from gross pay to cover taxes and benefits. So the term that describes total earnings before deductions is gross pay.

Gross pay is the total amount an employee earns before any deductions are taken out. It includes base wages or salary plus overtime, bonuses, and other compensation. Net pay, by contrast, is what you take home after deductions such as taxes and benefits are subtracted. The W-4 is a form used to determine how much tax to withhold, not a measure of earnings, and deductions are the amounts removed from gross pay to cover taxes and benefits. So the term that describes total earnings before deductions is gross pay.