
Concept explainers
Gross pay is the amount of earnings before payroll _____ are withheld; net pay is the actual amount of the _____. (9.1)

To fill: The blank spaces in the statement, “ Gross pay is the amount of earning before payroll ___ are withheld; net pay is the actual amount of the ____”.
Answer to Problem 1CR
Solution:
The complete statement is “Gross pay is the amount of earning before payroll deductions are withheld; net pay is the actual amount of the Employee’s paycheck after all payroll deductions”.
Explanation of Solution
The relations between gross pay and net pay is given below:
The term gross pay or gross earning refers to the amount of earnings which employees receive before any taxes and deductions are taken out.
Thus, the net pay or take-home pay is the actual amount of money which employees take home after all payroll deductions have been withheld.
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Chapter 9 Solutions
Contemporary Mathematics for Business & Consumers
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