Asked by: Zsuzsanna Biro
personal finance personal taxes

What is the term for the total amount of money an employee earns in a pay period?

Last Updated: 10th June, 2020

25
Responsible for preparing the payroll. gross earnings.The total amount of money an employee earns in a payperiod.

Click to see full answer.

Then, what is a net pay deduction?

Your full pay before any tax or NationalInsurance has been taken off. The total amount of take-homepay after deductions. This is called your netpay. The amounts of any deductions that change frompayday to payday, known as variable deductions. For exampletax and National Insurance, and what the deductions arefor.

Likewise, how does net pay work? Net Pay. Net pay is the total amount ofmoney that the employer pays in a paycheck to an employee after allrequired and voluntary deductions are made. To determinenet pay, gross pay is computed based on how anemployee is classified by the organization.

Subsequently, one may also ask, are gross earnings of an employee who is paid a flat amount per week or month regardless of the hours worked in a period?

Salaried employees are often paidsemi-monthly (e.g., on the 15th and last day of themonth) or bi-weekly (e.g., every other Friday) andtheir salaries are often stated as a gross annualamount, such as "$48,000 per year."

Are the year to date gross earnings of an employee?

YTD is calculated based on your employees'gross incomes. Gross income is the amount anemployee earns before taxes and deductions are taken out.YTD can also include the money paid to your independentcontractors.

Related Question Answers

Dorotea Uria

Professional

Is Pension taken from gross or net pay?

Pension contributions taken under the'net pay arrangement' are actually taken from thegross pay, not the net as HMRC's title suggests! Sowe call it the gross tax basis instead. Under this tax basisyou'd deduct employee contributions from their pay beforetax is taken. (That's why we call this tax basisgross.)

Anjelica Otero

Professional

What is taken out of your gross pay?

Gross pay is the amount of moneyyour employees receive before any taxes and deductions aretaken out. For example, when you tell an employee,“I'll pay you $50,000 a year,” it means you willpay them $50,000 in gross wages.

Ilduara Juillet

Professional

Can a company deduct money from your salary?

What deductions can an employer legally make froman employee's salary? Money can only be taken off anemployee's salary if he agrees to it, or if theemployer is legally obliged to do so. The employer paysthese amounts to the fund; Deductions in termsof a written agreement with the employee topay back a debt.

Teo Wainer

Explainer

Can a job withhold your paycheck?

Under federal law, employers are not obligated to giveemployees their final paycheck immediately. However, theymay be obligated to do so under state law. The employer cannotwithhold any part of the paycheck for anyreason.

Armine Ramacher

Explainer

What is the difference between gross and net pay?

For a company, net income is the residual amountof earnings after all expenses have been deducted from sales. For awage earner, gross income is the amount of salary orwages paid to the individual by an employer, before anydeductions are taken.

Mayme Mazurkiewic

Explainer

Can employers deduct pay for mistakes?

No, employers cannot charge employees formistakes, shortages, or damages. Only if you agree (inwriting) that your employer can deduct from your payfor the mistake.

Winfried Praharaj

Pundit

Is docking pay legal?

Your boss is indeed legally allowed to reduce ordock your pay. But like all things in life there areexceptions. There are cases when reducing someone's promisedpay can run afoul of labor laws. In most cases, it'seasier to dock the pay of an hourly worker than that of asalaried employee.

Yosyp Furdui

Pundit

Can an employer take money back if they overpay you?

Overpayments can happen when anemployer mistakenly believes an employee is entitled to thepay or because of a payroll error. Employers can't takemoney out of an employee's pay to fix up a mistake oroverpayment. Instead, the employer and employeeshould discuss and agree on a repayment arrangement.

Vern Hofener

Pundit

How does getting paid on the 15th and 30th work?

Semi-monthly Pay Periods:
Employees receive 24 paychecks per year, 2 per month.Employers typically issue checks on the 1st and 15th of themonth, or the 15th and the last day of the month. Youdo have the option of scheduling recurring payments on anytwo dates in a month that are spread equallyapart.

Velda Munitibar

Pundit

What are the benefits of salary pay?

Benefits of Salary Pay. The benefits ofbeing paid a set salary include the following:Guaranteed a certain dollar amount per paycheck. Some companiesoffer salaried employees additional perks, such as vacation days ora more flexible schedule.

Finnian Swange

Pundit

How do you calculate pay period?

Quarterly, semi-annual and annual pay periodsusually occur in specific circumstances, such as paid leave.Pay hourly employees based on the number of hours workedduring the pay period. Multiply the number of hours workedin the pay period by the employee's hourly rate to arrive atthe gross pay.

Primo Roque

Teacher

How do you calculate wages?

Calculating an Annual Salary from an HourlyWage
Multiply the number of hours you work per week by yourhourly wage. Multiply that number by 52 (the number of weeksin a year). If you make $20 an hour and work 37.5 hours per week,your annual salary is $20 x 37.5 x 52, or$39,000.

Umar Styrzbecher

Teacher

How does the 2 week pay period work?

A bi-weekly (2-week/14 day) payperiod consists of 26 pay periods in a year. Each paycycle generally consists of 80-hours for a full-time employee.Like the weekly pay period, a bi-weekly pay periodwill always begin and end on the known day of the week (forexample, start on Monday and end on Sunday two weekslater).

Uriel Hussendorfer

Teacher

What is retroactive salary increase?

Retroactive pay (retro pay) is a paymentmade to an employee to make up the difference between what was paidand what should've been paid. It can occur when salary isincreased in the middle of a pay cycle or a bonusthat was earned in a prior pay period is paid.

Enrica Vitov

Teacher

What does it mean to get retro pay?

Retroactive or back pay refers to incomeowed to an employee from a previous pay period.Retroactive pay may happen for a number of reasons, such asincorrect salary compensation or wages for hours worked, ora pay increase.

Saman Wezels

Reviewer

How do you calculate weekly pay?

Add the number of hours you worked each day of theweekly to calculate your total hours for the week.Multiply this number by your hourly wage to calculateyour gross weekly pay if your earnings are based on awage rather than a salary.

Latino Morde

Reviewer

How do you do salaries and wages?

The essential difference between a salary andwages is that a salaried person is paid a fixed amount perpay period and a wage earner is paid by the hour. Someonewho is paid a salary is paid a fixed amount in each payperiod, with the total of these fixed payments over a full yearsumming to the amount of the salary.

Jitka Tajes

Reviewer

How do I calculate my gross income?

Since gross income refers to the total amount youearn before tax, and so does your annual salary, simply take thetotal amount of money (salary) you're paid for the year, and thendivide this amount by 12.

Conception Veprentsov

Reviewer

What is my net income?

Gross income is the total amount of money youmake in a year before taking taxes or deductions into account. Itserves as your starting point for calculating net income. Ifyou're paid monthly, multiply the number from your pay stub by 12to get your gross annual income. If you're paid weekly,multiply it by 52.