Question

take-home pay is equal to ______.
a. net income - (required deductions + optional deductions)
b. gross income - (required deductions + optional deductions)
c. net income - (required deductions - optional deductions)
d. gross income - (required deductions - optional deductions)

Explanation:

Take - home pay is the amount an employee receives after all deductions (both required like taxes and optional like retirement contributions) are subtracted from their gross income (the total earnings before deductions). Option A uses net income which is incorrect as net income is after deductions. Option C and D have incorrect deduction operation (subtracting a subtraction in the parentheses) and wrong income type (net for C, wrong operation for D), so B is correct.

Answer:

B. gross income - (required deductions + optional deductions)