What is included in the calculation of gross pay?

Gross pay encompasses the total earnings that an employee receives before any deductions or withholdings, and this includes all forms of compensation. Bonuses and commissions are vital components of gross pay because they are additional earnings that employees can receive based on performance, sales, or achieving specific targets.

While hourly wages, salaries, withholdings, and deductions may play important roles in understanding employee compensation, they do not fully represent the gross pay calculation. For instance, hourly wages alone represent only a portion of earnings for non-salaried employees, and salaries do not account for additional performance-related pay.

Thus, recognizing bonuses and commissions as part of gross pay is crucial as they contribute significantly to an employee's overall compensation package, reflecting the broader scope of earnings beyond just basic wages or salaries.