gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included. For a wage earner, gross income is the amount of salary or wages paid to the individual by an employer, before any deductions are taken.For a wage earner, net income is the residual amount of earnings after all deductions have been taken from gross pay, such as payroll taxes, garnishments, and retirement plan contributions.
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