HR Glossary for HR Professionals
Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.
What is considered Gross Wages?
We can define gross wages as the total amount that an employer pays before taxes and other deductions are withheld.
Because of taxes and other deductions, take-home pay is often much less than gross wage.
Where can I find my gross wage?
These wages can be found on any given pay stub, and will be the largest number listed.
On the pay stub, you will also find the taxes and deductions taken out of your wages. In short, this will show you the difference between your gross wages and take-home pay.
What's the difference between gross wages and net wages?
Gross wages and net wages both involve employee earnings and the time that’s spent in the office. In contrast, gross and net differ when deductions are held.
These wages are the amount of pay prior to taxes and other deductions, although, it’s not the amount you receive.
Net pay is what you get to take home after all of the deductions are made.
How do I calculate gross wage?
First, these wages are dependent upon whether you are an hourly or salary employee.
As an hourly employee, you can calculate them using this simple calculation:
Hours x Wages = Gross Weekly Pay
Your annual salary will be your starting point. To determine your gross wages on a per-month basis, you can use this calculation:
Salary / 12 months = Monthly Gross Wage
Related Terms: Floating Holidays