For an hourly employee, wages can include breaks, on-call time, overtime, travel time and training. Gross pay is the starting point for all calculations related to employee compensation and taxes.

It's important to keep track of how much you've earned throughout the tax year. Here's how net pay works and its difference from gross pay.

Now, let’s say they worked a 40-hour week for 52 weeks throughout the year. With an hourly rate of $28, their annual gross pay would be $58,240. What is net pay or take-home pay?

Learn how to calculate your annual income, whether you're salaried, hourly, or self-employed. Discover tips for accurate calculations and understanding your financial picture.