Gross payment refers to the total amount of money an employee earns before any deductions are made. It includes all forms of earnings such as wages, salaries, profits, interest payments, rents, and other forms of compensation. Gross pay is usually referenced on federal and state income tax brackets. Employers use gross pay when discussing compensation with employees, such as $60,000 per year or $25 per hour. Gross pay is also used to calculate an employees gross income, which is the total amount of money earned throughout a given period before any deductions are made.

Calculating gross pay depends on how the employee is paid. For salaried employees, gross pay is equal to their annual salary divided by the number of pay periods in a year. For hourly employees, gross pay is calculated by multiplying the hourly rate by the number of hours worked.

It is important to note that gross pay is different from net pay, which is the amount of money an employee receives after all deductions are made. Deductions such as taxes, benefits, and other payroll deductions are withheld from gross pay to arrive at net pay.