Annual Income is the total earnings of an employee over a year, including wages, salaries, bonuses, and other compensation, before or after taxes depending on the context.
- What is annual income?
Answer: It is the total earnings of an employee over a year, including wages, bonuses, and other compensation. - How is annual income calculated?
Answer: It is calculated by adding all taxable income sources over 12 months. - What is the difference between gross and net annual income?
Answer: Gross annual income is before taxes and deductions, while net is after them. - Why is annual income important for HR?
Answer: It is used for payroll, benefits eligibility, and compliance with tax laws. - How can annual income affect employee benefits?
Answer: It determines eligibility for certain benefits or contribution limits in retirement plans.
