What are gross wages?

Gross wages refer to the total earnings of an employee before any deductions, such as taxes, Social Security, or retirement contributions are taken out. This figure encompasses all forms of compensation, including hourly wages, salaries, overtime pay, and any bonuses or commissions earned during the pay period. Understanding gross wages is crucial for both employees and employers, as it forms the basis for calculating net pay and understanding overall compensation.

In contrast, other options describe different concepts. The total earnings of an employee after deductions pertain to net pay, which is what the employee actually receives in their paycheck. Earnings that include only bonuses do not encapsulate the entire compensation package, and net pay refers specifically to the amount received after all deductions, distinguishing it from gross wages.