Question

how is net pay calculated? subtract all deductions from gross pay. multiply a percentage tax rate and gross pay. multiply the number of hours worked by the pay rate.

Explanation:

To determine net pay, we start with gross pay (total earnings before deductions). Deductions like taxes, insurance, etc., are taken out. So net pay = gross pay - total deductions. The second option calculates tax (a deduction) only, not net pay. The third option calculates gross pay (hours × pay rate), not net pay. Thus, subtracting all deductions from gross pay gives net pay.

Answer:

A. Subtract all deductions from gross pay.