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Salary after those tax payments is known as an employee s net salary.
Gross income before or after taxes. The difference between earned income and gross income is an important one come tax time. Gross income is the starting point from which the internal revenue service irs calculates an individual s tax liability. It is calculated on a business tax return as the total business sales less cost of goods sold cogs and appears on the income profit and loss statement as a starting figure. Find out how the irs uses both to determine your final tax liability.
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