Gross Wages

Accounting Dictionary

Gross Wages

Gross wages are the total amount of salary the employer paid to hire an employee. Gross wages are often much, much higher than the amount the employee receives.

If gross wages were $10,000 and the employer deducted $3,000 in income tax and $760 in payroll taxes, the employee would only receive the net wages of $6240. The gross wages of $10,000 was much higher than the net wages of $6,240 received by the employee.

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