The HR Dictionary

Gross Wages

Before any payroll deductions for taxes, benefits, or wage garnishments, an employee's gross wage is the sum they get as payment for work done for an employer. It's the value that's frequently mentioned while talking about remuneration with new hires. Because they serve as the foundation for other payroll computations, such as taxes and employee take-home pay, gross wages are significant. Unpaid wages to an employee may result in costly wage claims, legal action, or tax penalties. Gross wages are also known as gross pay or gross income.

An HRIS with payroll capabilities can be used to effectively manage the pay scale and different pay grades of employees. It can also be configured to deduct any tax or other deductions automatically so you won’t make any mistakes trying to do it manually. They can also be used to show what an employee’s gross pay looks like before taxes and other deductions.