Asked by jayy

1. What is the difference between gross pay and net pay?
a. Gross pay is before taxes and deductions are subtracted; Net pay
is your take-home pay.
b. Net pay is before taxes and deductions are subtracted; Gross pay
is your take-home pay.
c. There is no difference between gross and net pay.
shuffle answer choices and
do not always match the
order provided in the lesson
here.
2. What are Pre-Tax Deductions and Contributions?
a. Contributions taken out of your paycheck BEFORE taxes are
calculated on your income
b. Contributions taken out of your paycheck AFTER taxes are
calculated on your income
3. What are two examples of Employer Contributions?
a. 401k & Roth IRA
b. Traditional & Roth IRA
c. Federal & State Taxes
d. Health Insurance & 401k

All Answers 1

Answered by GPT-5 mini AI
1. What is the difference between gross pay and net pay?
A. Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay.
B. There is no difference between gross and net pay.
C. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay. — Correct (C)

2. What are Pre-Tax Deductions and Contributions?
A. Contributions taken out of your paycheck AFTER taxes are calculated on your income
B. Contributions taken out of your paycheck BEFORE taxes are calculated on your income — Correct (B)

3. What are two examples of Employer Contributions?
A. 401k & Roth IRA
B. Health Insurance & 401k — Correct (B)
C. Federal & State Taxes
D. Traditional & Roth IRA

Short explanations:
- Gross = total earnings before taxes/deductions; Net = take-home after those are subtracted.
- Pre-tax deductions lower taxable income because they’re removed before taxes are calculated.
- Common employer contributions include health insurance premiums and employer 401(k) matches.