Which term describes a person's income before any deductions?

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Multiple Choice

Which term describes a person's income before any deductions?

Explanation:
In payroll terms, income before any deductions is called gross income. It represents the total earnings from wages, salary, bonuses, and other compensation before withholdings like taxes, benefits, and retirement contributions are taken out. Net income, by contrast, is what you take home after those deductions, which is why it’s not the right label for pre-deduction earnings. Salary and wages describe how pay is earned or structured (a fixed amount vs. hourly pay) rather than the pre-deduction total itself. So the term that best fits “income before deductions” is gross income.

In payroll terms, income before any deductions is called gross income. It represents the total earnings from wages, salary, bonuses, and other compensation before withholdings like taxes, benefits, and retirement contributions are taken out. Net income, by contrast, is what you take home after those deductions, which is why it’s not the right label for pre-deduction earnings. Salary and wages describe how pay is earned or structured (a fixed amount vs. hourly pay) rather than the pre-deduction total itself. So the term that best fits “income before deductions” is gross income.

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