Question

Explain why two employees at a company, earning the same gross pay, might have different net pays.

Answer 1

It would be depending on how they filled out their tax forms before starting the job. Some people may have children to claim on their tax returns and some people may only be able to claim only theirself .

Answer 2

Gross pay is the total amount of money an employee is entitled to at the end of a working period while Net pay is the money an employee gets at the end of a working period after all necessary deductions must have been done.

Step-by-step explanation:

Gross pay of two emloyees might be the same without having the same net pay because the deductions made from the gross pay to arrive at their net pay may be different. deductions such as pension, housing allowances, car allowances, transport allowances vary across employees and this might lead to the discrepancy.