What is the relationship between gross pay and net pay? A) gross pay is less than netB) gross pay is more than net C) gross pay is the same as net

Accepted Solution

Answer:Net means something has been subtracted. Your gross pay is to total amount you've earned before deductions like taxes or other pre-tax deductions like health care or flexible spending account monies or 401k pre-tax savings accounts.For this reason, Gross will always be more than net when it comes to pay unless there are NO DEDUCTIONS. That means that B is the correct answer here - Net is less than gross.A good way to think about this is a net catches some fish but lets others go. if you run a net through the ocean, you wont take everything in the water home, only a part of what's actually there.Hope this helps!Step-by-step explanation:Gross Pay = $100Taxes =$20Gross Pay ($100) - Taxes ($20) = Net Pay100-20=80Net Pay = $8080 is less than 100