What is Gross Pay?
What is gross pay?
Gross pay is the total amount you earn before taxes, other deductions, and contributions are taken out.
For example, let’s say that you make $100 per hour and work 40 hours per week. Your gross pay for that week would be $4,000 (40 hours x $100/hour).
In contrast to gross pay, net income takes into account any taxes or other deductions that were made from your paycheck during the period in question — it’s what remains after all these factors have been accounted for.
How do you calculate gross pay from an hourly wage?
To calculate your gross pay from an hourly wage, add together all of your hourly wages.
Then divide by the total number of hours worked during that period. Next, multiply that number by the number of days you worked during that period (including weekends) and then add any overtime pay or bonuses.
How do you calculate your gross pay from a salary?
A salary is a fixed amount of money that you are paid for your work. It’s not based on the number of hours you work, the quality of your work, or even how much work you do.
