Salary Deductions

Front

What is salary?

Back

A fixed regular payment, typically paid on a monthly or biweekly basis, for work performed.

Front

What is gross income?

Back

The total income earned before any deductions are taken out.

Front

What are deductions?

Back

Amounts subtracted from gross income, such as taxes and insurance, to determine net income.

Front

What is net income?

Back

The amount of money an employee takes home after deductions are made from gross income.

Front

How do you calculate net income?

Back

Net Income = Gross Income - Deductions.

Front

If an employee's gross income is $550 and deductions are $132.50, what is the net income?

Back

Net Income = $550 - $132.50 = $417.50.

Front

How many times is an employee paid if they receive a monthly salary?

Back

12 times a year.

Front

What is an annual salary?

Back

Money earned over the course of a year for working.

Front

If Amorelle made $384 in gross income and her deductions are $122, what is her net income?

Back

Net Income = $384 - $122 = $262.

Front

What is payroll tax?

Back

A tax imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.