gross pay

Definition

The amount of wages earned by an employee before the appropriate taxes are taken out.

Use gross pay in a sentence

Fred was excited to start his new job with an impressive wage, but once he saw the difference between his gross pay and his take home pay, he realized he was now in a higher tax bracket.

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John Smith suspected there was an accounting error because too many taxes were being deducted from his gross pay making his net income way less than it should have been.

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When the company provided their offer to the prospective candidate, the gross pay amount was $50,000. However, the candidate knew they would never see the whole 50 since taxes and insurance would be taken out.

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gross negligence net pay