What is gross wages?

[alenaghose]

I’ve been reading about paychecks and financial terms, and I keep coming across the term "gross wages." Can someone explain what gross wages are exactly? How do they differ from net wages, and what deductions typically get taken out of gross wages to arrive at the net amount?

 

[maria]

Gross wages refer to the total amount of money an employee earns before any deductions like taxes, benefits, or retirement contributions. It includes hourly wages, salary, overtime, bonuses, and commissions. In simple terms, it’s the full amount paid to an employee before anything is taken out.

 

[Shane Warne]

Gross wages are the total earnings an employee receives before any deductions like taxes, insurance, or retirement contributions.