What is referred to as gross pay?

Gross pay is defined as the total income an employee earns before any deductions are taken from their paycheck. This includes not only the salary or hourly wages but may also encompass bonuses, overtime pay, and any other earnings before taxes or other deductions such as retirement contributions, insurance premiums, and other withholding amounts. Understanding gross pay is essential for employees to gauge their overall earnings before any financial deductions occur.

The other options do not accurately describe gross pay: net income after taxes refers to the amount an employee takes home after deductions; income minus expenses pertains to profit calculations often used in business contexts; and investment earnings before fees relates specifically to returns from investments, not employee compensation. Therefore, the correct characterization of gross pay is the total income before any deductions.