In payroll, which term refers to earnings before deductions?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the SkillsUSA Additive Manufacturing Test. Use flashcards and multiple choice questions, each with hints and explanations. Be exam-ready!

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.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy