Question

1 Select the correct answer. Steven is an HR manager in a large company. After several interview rounds, he has selected a candidate for the position of senior analyst. Steven makes an offer to the candidate, and the candidate mentions that she expected a higher take-home amount on her weekly paycheck. Which part of the compensation package is the candidate referring to? A. gross salary B. net salary C. paid vacation D. insurance

Answer 1

Answer: Option (B) Net salary

Explanation: Salary is any fixed amount paid by the employer to an employee in exchange for the services offered. Salary is divided into two categories which are gross salary and net salary.

Net salary is the amount of take-home pay remaining after all withholdings and necessary deductions have been removed from a workers salary, the employee then receive the residual amount. Net salary is lower than gross salary. Net salary is the fixed amount of income enjoyed by the employee monthly and it is excluded from all other fringe benefits. While Gross salary is therefore the composite of several components of an individual salary package.