What financial term describes the total amount an employee earns before any deductions?

The total amount an employee earns before any deductions is known as gross pay. This figure represents the employee's earnings, which may include wages, salaries, bonuses, and commissions before taxes and other deductions such as retirement contributions or health insurance premiums are taken out. Gross pay is a critical number in payroll accounting, as it serves as the basis for calculating various deductions that ultimately affect the employee's take-home pay, known as net pay.

In contrast, net pay is the amount the employee receives after all deductions are made, while adjusted income typically accounts for specific tax adjustments or exclusions and does not refer specifically to total earnings. Taxable income, on the other hand, refers to the portion of gross income that is subject to taxation after deductions and exemptions are applied. Understanding these terms is essential for accurately calculating payroll and ensuring employees are compensated correctly.