Gross Pay and Net Pay

Lucy earned $493 for the week plus $525 in tips. What is her gross pay?

• $620

• $865

• $32

• $1,018

Pay Stub

• Expenses that increase/decrease monthly or yearly EX: TV provider, internet, food, entertainment, utilities

• Hard or electronic copy of earnings that show all deductions and results in net pay

• Federal or State tax on your gross income

• Income left over after paying all expenses for the month or year.

Deductions

• Hard or electronic copy of earnings

• Anything that you might incur an expense for

• All expenses deducted from gross pay that results in net pay.

• Federal or state tax paid after net pay is received

Net pay

• Revenue before deductions

• State and local taxes

• Income after all deductions have been paid

• I don't know i just want pizza and wings

You earn $45,000.00 a year from your job. You pay roughly 25% in taxes a year. What is your net monthly income?

• $2,812.50

• $3,750.00

• $33,750.00

• $28,125.00

What is the difference between gross pay and net pay?

• Gross pay is the total earnings before deductions, while net pay is the amount after deductions.

• Gross pay is the amount after deductions, while net pay is the total earnings before deductions.

• Gross pay includes only salary, while net pay includes salary and bonuses.

• Gross pay is the amount after taxes, while net pay is before taxes.

Which of the following is typically deducted from gross pay to calculate net pay?

• Bonuses

• Overtime pay

• Taxes and insurance

• Reimbursements

If an employee's gross pay is $4,000 and the total deductions are $1,200, what is the net pay?

• $2,800

• $4,000

• $1,200

• $5,200

Why is understanding the difference between gross pay and net pay important for budgeting?

• It helps in planning expenses based on actual take-home pay.

• It helps in calculating total earnings before taxes.

• It is necessary for filing tax returns.

• It is required for applying for loans.

Which document typically shows both gross pay and net pay?

• Bank statement

• Pay stub

• Tax return

• Credit report