Question

Explain why two employees at a company, earning the same gross pay, might have different net pays.

Answer 1

There could be extra tips or they could be taxed differently

Answer 2

Explanation:

Gross pay:

Gross pay can be define as the wage before paying any taxes and all other deductions.

Net pay:

Net pay can be define as the wages after paying all taxes and all other deductions.

So we can say that

Gross pay = Net pay + taxes and all other deductions

So from above equation we can say that ,even two employees have same gross pay but can have different net pays .Because maybe they are paying different taxes and other deductions.