What is defined as net pay? (1 point)
It is the total amount of
• money a worker earns in a given pay period.
It is the money that
• is subtracted from gross pay to pay for benefits.
It is the money that is
• withheld from gross pay to pay taxes.
It is the money left over
• after deductions are
removed and taxes are withheld from gross pay.
The correct answer is: It is the money left over after deductions are removed and taxes are withheld from gross pay.
Net pay is the money left over after deductions are removed and taxes are withheld from gross pay. It is the total amount of money a worker earns in a given pay period, minus the money that is subtracted from gross pay to pay for benefits and the money that is withheld from gross pay to pay taxes.
To calculate net pay, you need to start with the gross pay, which is the total amount of money a worker earns in a given pay period. This includes their salary or hourly rate, as well as any additional income such as bonuses or commissions.
From the gross pay, you then subtract any deductions related to benefits. This can include things like health insurance premiums, retirement contributions, or other benefits provided by the employer.
Next, you need to subtract the amount of money that is withheld from the gross pay to pay taxes. This includes income taxes, social security taxes, and any other applicable taxes based on the worker's earnings and location.
Finally, after all deductions and taxes have been taken out, the remaining amount of money is the net pay. Net pay is the money left over after all the deductions and taxes have been removed from the gross pay. It is the amount that the worker actually receives in their paycheck.