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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.
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.
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A. Subtract all deductions from gross pay.