What is the total amount of an employee's earnings before any deductions are taken out called?

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Prepare for the EPF Honors Essentials exam with flashcards and multiple choice questions that include hints and explanations. Boost your confidence and ace the test!

The total amount of an employee's earnings before any deductions are made is referred to as gross income. Gross income encompasses all forms of earnings, including wages, salaries, bonuses, and any other compensation received by the employee.

This term is significant in various financial contexts, such as filing taxes and evaluating an individual's financial situation, as it represents the total income available before any expenses or deductions (like taxes, retirement contributions, and other withholdings) are applied. By contrast, terms like net income, disposable income, and adjusted income represent different stages of income after certain deductions or adjustments have been made. This distinction is crucial for understanding paycheck calculations and overall financial planning.

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