Asked by Ryan Makhanlall on Jun 01, 2024
Verified
Gross pay is equal to take-home pay less federal withholdings.
Gross Pay
The total amount of money an employee earns before any deductions are made.
Take-Home Pay
The amount of earnings an employee receives after deductions like taxes and retirement plan contributions are subtracted from their gross pay.
Federal Withholdings
The amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax.
- Comprehend the distinctions among gross pay, net pay, and taxable income.
Verified Answer
AA
Abdullah Aladib
Jun 01, 2024
Final Answer :
False
Explanation :
Gross pay is the total amount earned by an employee before any deductions or withholdings, including federal taxes, are made. Take-home pay, or net pay, is what remains after all deductions have been applied.
Learning Objectives
- Comprehend the distinctions among gross pay, net pay, and taxable income.