Previous Page

Gross pay

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

Table of Contents

Gross Pay

Gross pay is the total amount of money an employee receives before taxes and deductions are taken out. It is the amount of money an employee earns for the work they do, and it is usually listed on a pay stub. Gross pay includes wages, salaries, bonuses, commissions, and other forms of compensation. It does not include deductions such as taxes, insurance, and retirement contributions.

History of Gross Pay

The concept of gross pay has been around for centuries. In the United States, the first federal income tax was enacted in 1862. Since then, the concept of gross pay has been used to calculate the amount of taxes owed by an individual. In the early 20th century, the concept of gross pay was further refined with the introduction of the Social Security Act of 1935. This act established the Social Security system, which is still in place today.

Comparison of Gross Pay

Type of Pay Gross Pay
Hourly Wage $15.00
Salary $50,000
Commission $2,000
Bonus $500

Summary

Gross pay is the total amount of money an employee receives before taxes and deductions are taken out. It is the amount of money an employee earns for the work they do, and it is usually listed on a pay stub. Gross pay includes wages, salaries, bonuses, commissions, and other forms of compensation. For more information about gross pay, you can visit the Internal Revenue Service website, the Social Security Administration website, or your local state government website.

See Also

  • Net Pay
  • Taxable Income
  • Tax Withholding
  • Payroll Taxes
  • Employee Benefits
  • Employee Retirement Plans
  • Employee Stock Options
  • Employee Stock Purchase Plans
  • Employee Bonuses
  • Employee Commissions

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly