Income and Income Taxes

Front

What is gross income?

Back

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

Front

What is net pay?

Back

Net pay is the amount of money a person takes home after all deductions, including taxes, have been subtracted from gross income.

Front

How do you calculate gross pay?

Back

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

Front

What are deductions?

Back

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

Front

What is the formula to calculate net pay?

Back

Net pay = Gross income - Total deductions.

Front

What are taxes?

Back

Taxes are required payments to the government based on income, property, or sales.

Front

If you earn $10.75 an hour and work 30 hours, what is your gross pay?

Back

Gross pay = $10.75 * 30 = $322.50.

Front

If David's gross income is $127.25 and his deductions are $25.20, what is his net pay?

Back

Net pay = $127.25 - $25.20 = $102.05.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is what remains after deductions.

Front

If your gross pay is $525.50 and your net pay is $446.75, how much was deducted?

Back

Deductions = Gross pay - Net pay = $525.50 - $446.75 = $78.75.