005Calculate Net Pay

What is gross pay?

• Total amount of money earned by an employee before deductions or taxes

• Amount of money earned after deductions

• Net pay after deductions and taxes

• Total amount of money earned after taxes

How is gross pay calculated?

• By subtracting taxes from the total earnings.

• By dividing the total earnings by the number of hours worked.

• By adding the number of hours worked to the hourly rate of pay.

• By multiplying the number of hours worked by the hourly rate of pay and adding any additional earnings such as overtime or bonuses.

What are deductions?

• Amounts added to income to calculate taxable income.

• Amounts multiplied by income to calculate taxable income.

• Amounts divided by income to calculate taxable income.

• Amounts subtracted from income to calculate taxable income.

How are deductions calculated?

• By dividing eligible expenses or amounts by the total income or amount.

• By subtracting eligible expenses or amounts from the total income or amount.

• By adding eligible expenses or amounts to the total income or amount.

• By multiplying eligible expenses or amounts with the total income or amount.

What is tax?

• Tax is a voluntary financial contribution made by individuals or businesses to support public expenditures and services.

• Tax is a type of investment made by individuals or businesses to stimulate economic growth.

• Tax is a fee charged by financial institutions for managing personal or business accounts.

• Tax is a mandatory financial charge or levy imposed by the government on individuals or businesses to fund public expenditures and services.

How is tax calculated?

• Subtracting the tax rate from the taxable amount.

• Multiplying the taxable amount by the tax rate.

• Dividing the taxable amount by the tax rate.

• Adding the taxable amount to the tax rate.

What is net pay?

• The amount of money an employee earns before deductions.

• The amount of money an employee receives as a bonus.

• The amount of money an employee pays in taxes.

• The amount of money an employee takes home after deductions.

How is net pay calculated?

• By subtracting deductions from the gross pay.

• By dividing deductions by the gross pay.

• By multiplying deductions with the gross pay.

• By adding deductions to the gross pay.

What are payroll deductions?

• Amounts of money given to employees as reimbursement for work-related expenses.

• Amounts of money deducted from an employer's bank account to pay employees.

• Amounts of money taken out of an employee's paycheck to cover expenses such as taxes, insurance premiums, and retirement contributions.

• Amounts of money added to an employee's paycheck as bonuses and incentives.

Give an example of a payroll deduction.

• Vacation time

• 401(k) contributions

• Employee discounts

• Health insurance premiums