Ben’s first paycheck at his new job was less than he expected after deductions for taxes and insurance. What term BEST defines the amount of income that gets deposited after all deductions are taken? (1 point) Responses subsidized subsidized net net gross gross fiduciary
The term that best defines the amount of income that gets deposited after all deductions are taken is "net."
The term that BEST defines the amount of income that gets deposited after all deductions are taken is "net."
The term that best defines the amount of income that gets deposited after all deductions are taken is "net" income. Net income, sometimes called take-home pay, is the amount of money an individual receives in their paycheck after all deductions such as taxes and insurance have been subtracted.
To calculate net income, you can follow these steps:
1. Start with the gross income: This is the total amount of money earned before any deductions are taken. It includes the base salary or wages.
2. Deduct taxes: Depending on the tax laws and the individual's income level, various taxes such as federal income tax, state income tax, and sometimes even local taxes are deducted from the gross income.
3. Deduct insurance premiums: If the employer offers health insurance or other types of insurance coverage, premiums for those policies may be deducted from the gross income.
4. Deduct other deductions: Other deductions, such as contributions to retirement plans or other benefits, could be subtracted as well.
5. The remaining amount after deducting all these factors is the net income that the individual will receive in their paycheck.
So, in Ben's case, if his first paycheck was less than expected after deductions for taxes and insurance, it means that he received his "net" income, which is the actual amount he took home after all the necessary deductions were made.