2007-02-08 11:15:11 · 3 answers · asked by justjules 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Gross base salary is what the company commits to paying you. For example, if you have a job that pays $60,000 per annum, the company gaurantees to pay you $5,000 a month.
Out of that, the government takes its bite: Federal, state, and city taxes, social security, FICA, etc. Your Net salary is what is left over after this "little" deduction... what you actually take home/deposit in the bank.
In addition to your base salary, you may put in extra hours and get paid for the overtime (if you're eligible for overtime). Also some jobs have bonuses, etc.
Bonuses, stock options, and their ilk are not included in your base pay, as they are at the discretion of management, and/or are performance related, and/or triggered by duration of employment, etc. In effect, the compay holds out the promise of more money, but earning the additional funds are usually based on your work product. These additional moneys are also subject to taxes and deductions.
2007-02-08 11:56:12 · answer #1 · answered by Lady Yaz 3 · 0⤊ 0⤋
Base wages is your base salary. Gross wages is everything you paid....base salary plus any bonuses, stock option income, profit sharing etc. that you received. Net wages is what you take home, the gross wages less your pre-tax and after tax deductions for things like health insurance, 401(k) contributions, etc. and less your withholdings. Net taxable wages is what you are subject to tax on, your gross wages less your pre-tax deductions. So net taxable wages is your net take home pay (net wages) before deducting after tax deductions and withholdings.
2007-02-08 19:51:05 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
Gross is your wages before taxes. Net is after taxes.
2007-02-08 19:49:51 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋