Gross and Net Income

Front

What is Gross Income?

Back

The total amount of money you earn before any deductions are taken out.

Front

What is Net Income?

Back

The amount of money you receive after deductions are subtracted from your gross income.

Front

If Yvonne's net income is $451.82 and her deductions are $251.18, what is her gross income?

Back

$703

Front

If David's gross income is $127.25 and his deductions are $25.20, what is his net pay?

Back

$102.05

Front

What are deductions?

Back

Amounts of money that are subtracted from gross income, such as taxes and insurance.

Front

How do you calculate Net Income?

Back

Net Income = Gross Income - Deductions.

Front

If Dayanara's gross income is $550 and her deductions are $110 for payroll taxes and $22.50 for health insurance, what is her net income?

Back

$417.50

Front

If Alexis worked 24 hours at a rate of $12 per hour, what is her gross pay?

Back

$288

Front

What is the formula to calculate Gross Income?

Back

Gross Income = Hourly Rate x Hours Worked.

Front

What is an example of a deduction?

Back

Payroll taxes, health insurance premiums, retirement contributions.