Asked by Marissa Aguilar on Jun 12, 2024
Verified
Net pay is equal to gross pay less the amount withheld for federal income tax.
Net Pay
The amount of an employee's salary that remains after deducting taxes and other statutory deductions.
Gross Pay
The total amount of an employee's earnings before any deductions or taxes are applied.
Federal Income Tax
The federal government's imposition of a financial charge on the yearly profits of individuals, corporations, trusts, and different legal organizations.
- Acquire knowledge of the differences that exist between gross income, net income, and earnings subject to taxation.
Verified Answer
IB
iffat BashirJun 16, 2024
Final Answer :
False
Explanation :
Net pay is equal to gross pay less all deductions, not just federal income tax, but also state taxes, Social Security, Medicare, and any other deductions like retirement contributions or health insurance premiums.
Learning Objectives
- Acquire knowledge of the differences that exist between gross income, net income, and earnings subject to taxation.