Net income is a larger amount than gross income.
Gross income is all of the money earned.
When a person receives their pay check, the amount paid is the net income.
You can find the gross income by adding the net Income to the taxes and deductions withheld from the check.
A deduction is subtracted from the net income.
The deductions and taxes plus the gross income equals the net income.
If an employee earned $600, but had to pay $65 in taxes and deductions, his gross income would be $665.
The gross income is the sum of the income taxes and payroll taxes.
If an employee earned $600, but had to pay $65 in deductions, and taxes, his net income would be $535.
Taxes and deductions are subtracted from the net income.