What is the amount an individual makes prior to any deductions called?

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The amount an individual makes prior to any deductions is called gross wage. This figure represents the total earnings before taxes, insurance, retirement contributions, or any other deductions are taken out. Understanding gross wage is crucial as it provides a clear picture of one's total earnings, allowing for better financial planning and budgeting.

Net pay, on the other hand, is the amount an employee actually takes home after all deductions have been accounted for, which is why it does not apply in this context. Withholdings refer to the amounts deducted from a paycheck for taxes and other obligations, and commission is typically a payment based on sales performance rather than a flat wage. Thus, gross wage stands out as the correct term for earnings before any deductions.

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