Regarding gross and net pay,which of the following statements is correct?
A) Gross pay minus all deductions such as income tax withheld equals net pay.
B) Net pay represents the total salaries and wages expense to the employer.
C) For most businesses, gross pay equals net pay.
D) Employers are required to deposit net pay into the employee's bank account.

Question

Quizplus · Accepted Answer

Gross pay refers to the total amount of an employee's earnings before any deductions, while net pay is the amount of pay received by an employee after all the deductions are made. Therefore, gross pay minus all deductions such as income tax withheld equals net pay.

Regarding Gross and Net Pay,which of the Following Statements Is