Although both gross and net income are related to an employee’s earnings, they exhibit distinct disparities:
Gross income encompasses an employee’s total earnings, which include their hourly salary, hourly wage, bonuses, and commissions, prior to any deductions or taxes being withheld.
On the other hand, net income reflects the actual amount an employee receives in their pocket, accounting for deductions like taxes and various other withholdings, such as those associated with health insurance, retirement plans, or additional benefits.