What is Gross Earnings?

Gross earnings refers to the total earnings of an individual, prior to deductions for income taxes and other taxes, as well as any deductions imposed by the employer. Gross earnings are listed on the remittance advice (pay stub) that is attached to a paycheck, along with an itemization of all deductions, resulting in a net pay figure.

Examples of Gross Earnings

Here are several examples of gross earnings:

Gross earnings for a salaried employee. An employee has $100,000 of gross earnings, after which $35,000 is deducted for income taxes, social security, garnishments, medical insurance, and charitable deductions, leaving net income of $65,000. The person’s $100,000 gross earnings figure is the salary that he is being paid, while the $65,000 figure is the amount stated on his paycheck.
Gross earnings for a salesperson. A salesperson has $30,000 of fixed base salary, and earns another $70,000 of commissions. From this $100,000 is deducted $32,000 for income taxes, social security, and medical insurance, leaving net income of $68,000. The salesperson’s $100,000 gross earnings figure is comprised of both a salary and commissions, while the $68,000 figure is the amount stated on his paycheck.

Are Gross Earnings Your Salary?

Yes, your gross earnings match your salary. This is the amount paid to you by your employer before any taxes or other items have been deducted from your pay. Thus, if an employer offers you an annual salary of $80,000, that will also be your annual gross earnings.