Final answer:
The gross salary is an employee's earnings before deductions such as taxes and FICA contributions. For instance, a biweekly pay of $1500 is the gross salary, but after deductions, the net salary might be around $1000. These deductions can include federal, state taxes, and contributions to social security and Medicare.
Step-by-step explanation:
An employee's gross salary for the most recent pay period is the amount of money they earn before any deductions are taken out, such as taxes and other withholdings. For example, if you have a job that pays you $1500 every two weeks, that amount is your gross salary. However, you will not receive the full $1500 in your bank account because of mandatory deductions like federal and state taxes, as well as contributions to Social Security and Medicare, often referred to as FICA taxes.
When you receive your paycheck, you may see that from your $1500 gross salary, a certain amount has been deducted, leaving you with, say, $1000. This remaining amount after all deductions is known as your net salary or take-home pay. The process of deductions can be surprising, especially when seeing your paycheck for the first time, as it might be less than what you originally calculated based on the number of hours worked and your hourly wage.