Income Gross/Net/Taxes

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What is gross income?

Back

Gross income is the total amount of money earned before any deductions or taxes are taken out.

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What is net income?

Back

Net income is the amount of money left after all deductions and taxes have been subtracted from gross income.

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What are deductions?

Back

Deductions are amounts that are subtracted from gross income, such as taxes, insurance, and retirement contributions.

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What is federal income tax?

Back

Federal income tax is a tax levied by the federal government on an individual's income.

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What is Social Security tax?

Back

Social Security tax is a payroll tax that funds the Social Security program, which provides benefits for retirees and disabled individuals.

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What is Medicare tax?

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Medicare tax is a payroll tax that funds the Medicare program, which provides health insurance for individuals aged 65 and older.

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What is health insurance?

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Health insurance is a type of insurance that covers medical expenses for individuals.

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How do you calculate gross pay?

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Gross pay is calculated by multiplying the hourly wage by the number of hours worked.

Front

If you earn $9.50 an hour and work 15 hours, what is your gross pay?

Back

$142.50

Front

What is the formula to find net income?

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Net income = Gross income - Total deductions.