Which items are included in an employee’s earnings statement?

The items included in an employee's earnings statement typically encompass gross pay, deductions, and net pay. Gross pay represents the total amount earned by the employee before any deductions are made. This may include hourly wages, salaries, overtime pay, bonuses, and commissions.

Deductions are amounts taken out of the gross pay, which could consist of taxes (like federal, state, and local income taxes), Social Security contributions, Medicare contributions, and any voluntary deductions such as retirement contributions or health insurance premiums.

Net pay is the amount the employee takes home after all deductions have been applied. It reflects the actual earnings that the employee will receive in their paycheck.

This comprehensive view provided by the earnings statement ensures that employees can track their earnings accurately and understand how their gross pay is affected by deductions, leading to their final net pay. Other options fail to include all necessary components, either focusing too narrowly on specific types of compensation or omitting crucial elements of the earnings breakdown.