Gross earnings

Gross earnings refers to the total earnings of an individual, prior to deductions for income and other taxes, as well as any deductions imposed by the employer. For example, an employee has $100,000 of gross earnings, after which $35,000 is deducted for income taxes, social security, garnishments, medical insurance, and charitable deductions, leaving net income of $65,000. Gross earnings are listed on the remittance advice (pay stub) that is attached to a paycheck, along with an itemization of all deductions, resulting in a net pay figure.

Related Courses

Payroll Management