Final answer:
Many employers provide benefits that are excluded from gross income, such as employee insurance, retirement plans, and employer payments to Social Security.
Step-by-step explanation:
In addition to receiving a salary from a company, many employers provide benefits that are excluded from gross income. These benefits can include:
- Employee insurance (mainly health)
- Retirement plans
- Employer payments to Social Security
- Unemployment and worker's compensation insurance
- Other benefits (Medicare)
These benefits are part of the total compensation an employee receives, but are not subject to income taxes.