Question

How do you calculate gross pay net pay and employee benefits

Answer 1

In the payroll world, everything begins with gross pay. That is, all other calculations for employee pay, overtime, withholding, and deductions are based on gross pay. Because this is an important concept, this article will give you all the details about calculating gross pay and using it in other calculation.Gross pay for an employee is the amount used to calculate that employees' wages (for an hourly employee) or salary (for a salaried employee. It is the total amount you as the employer owe the employee for work during one pay period. Gross pay includes regular hourly or salaried pay and it also includes any overtime paid to the employee during the pay period.

For both salaried and hourly employees, the calculation is based on an agreed-upon amount of gross pay. That is, both the employee and employer have agreed that this is the pay rate.The pay rate should be in writing and signed by both the employee an employer.

For hourly employees, that pay rate might be negotiated by a union contract. For salaried employees, that rate might be in an employment contract or just a pay letter. In each case, the gross pay rate should be agreed to and signed before the employee begins working.

Explanation:

Answer 2

Gross pay is the amount of money your employees receive before any taxes and deductions are taken out. For example, when you tell an employee, “I'll pay you $50,000 a year,” it means you will pay them $50,000 in gross wages.

Hope this helps!!