1.2.5 Understanding Your Paycheck

$1,578

$3,157

$1,457

$729

$82.02

$118.11

$902.21

$866.12

an automatic process

fewer tax withholdings

more frequent payments

higher earnings

Net income is the income when the employee is paid by the hour. Gross income is the income when the employee is salaried.

Gross income is the income when the employee is paid by the hour. Net income is the income when the employee is salaried.

Net income is the income before taxes and deductions are subtracted. Gross income is the income after taxes and deductions are subtracted.

Gross income is the income before taxes and deductions are subtracted. Net income is the income after taxes and deductions are subtracted.