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Gross wages are the total pay an employee receives before deductions during a pay period.

Gross wages differ from net wages in that the latter describes gross wages after deductions.

Gross wages include bonuses, commissions and overtime pay, but not employee expense reimbursements.

This article is for small business owners looking to calculate employees’ gross wages.

Gross wages sounds like a simple concept. It’s the amount of pay your employees earn. But what exactly is — and isn’t — included in gross wages, and why is it so important to calculate gross wages correctly? We’ll explain exactly what gross wages are, how to calculate them, and why understanding gross wages is critical to managing your small business.

Editor’s note: Looking for the right payroll software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

What are gross wages?

Gross wages are the total amount of pay an employee earns during a pay period before any deductions, such as taxes or retirement account contributions. 

For example, a chief of finance earning a salary of $100,000 has annual gross wages of $100,000. With semi-monthly paychecks, this employee’s gross salary per pay period is $4,166.67 ($100,000 ÷ 24 pay periods per year).

An hourly employee who earns $20 per hour and works 40 hours in a week has gross wages of $800 for the week ($20 per hour x 40 hours). 

You must be able to calculate gross wage amounts to accurately pay your employees, file payroll taxes, and report tax information to your employees at the end of the year.

The difference between gross and net wages

Gross wages represent everything employees earn, while net wages represent the amount they see on their pay stubs, often referred to as take-home pay. The difference between gross and net wages is equal to the total deductions for federal, local and state income taxes; retirement contributions; automatic contributions; and other reductions in pay. 

For example, say you have a full-time employee who earns $20 per hour in a location with no state income tax. Their gross pay, deductions and net pay are as follows:

Gross pay (40 hours x $20 per hour)$800.00Federal income tax withholding, from tables-$60.00FICA (Social Security and Medicare) tax withheld (7.65 percent)-$61.20Union dues ($2 per hour x 40)-$80.00Health insurance contributions-$90.00Total deductions from pay-291.2Net pay$508.80

Key Takeaway

Gross Wages – Payroll Deductions = Net Wages

What should I include in gross wages?

Gross wages include different types of pay based on whether an employee is hourly or salaried. For salaried employees, gross wages include salary, bonuses and any additional pay. 

For hourly employees, gross wages include hourly pay, overtime pay, piece-rate pay, bonuses and any other earned pay. Gross wages may also include payment for travel time, training, on-call hours and breaks, depending on the labor laws in your location and your discretion. 

For both salaried and hourly workers, gross wages include tips and commissions.

If you reimburse employees for expenses and use an accountable plan as described by the Internal Revenue Service, do not include expense reimbursements in wages. This is essential to avoid your employees having to pay tax on reimbursements. [See our guide to mileage reimbursement laws and policies.]


If your employees work overtime, make sure you understand federal overtime rules and pay them according to the regulations. Failure to do so may result in lawsuits, fines and possible criminal charges for repeated violations.


To discover how the leading payroll services can benefit small businesses like yours, visit our overview of the best payroll software. You’ll learn the ins and outs of payroll software while seeing our top recommendations based on your business’s size, payroll complexity and more.

Key Takeaway

Two in three business owners aren’t paying themselves due to inflation.

Understanding gross wages is vital to your business

Whether you use payroll software or do the calculations yourself, understanding gross wages helps you pay your employees correctly, report payroll taxes accurately, and stay on the right side of labor and tax laws. You also need to calculate your gross payroll and total payroll costs as part of your cost of goods sold and overhead costs. The more you know about your company’s gross wages and payroll costs, and changing trends in those costs, the more effectively you can make sound decisions and financial plans for your small business. 

Max Freedman contributed to this article. 

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How Is Current Asset Turnover Ratio Calculated?

What is Current Asset Turnover Ratio?

The current assets turnover ratio indicates how many times the current assets are turned over in the form of sales within a specific period of time. A higher asset turnover ratio means a better percentage of sales. That is why the more the amount of current asset turnover ratio, the better the ability of the company to generate sales.

Creditors. look for a higher current asset turnover ratio because it shows that a company is strong in its fundamentals. The creditors. look at the current asset turnover ratio because they are interested in the performance of the company in terms of net sales. As the current assets turnover ratio offers. an insight into the number of turnovers. of net sales, it is considered a benchmark of the quality of the company’s sales.

Current Asset Turnover Ratio Calculation

The formula used to calculate the Current Assets Turnover Ratio is as follows −

Formula −

$$mathrm{mathrm{Current: Assets: Turnover}:=:frac{mathrm{Liquid: Sales}}{mathrm{Liquid :Liabilities}}}$$


$$mathrm{mathrm{Current: Assets: Turnover}:=:frac{mathrm{Net: Sales}}{mathrm{Current: Assets}}:times 100}$$

When we divide net sales by current assets and multiply it by 100, the value of sales that occurred due to an investment of Rs. 100 is obtained. Therefore, the current assets turnover ratio, when expressed in percentage terms, indicates the net sales that have occurred due to the investment of each Rs. 100 in the process.

For example, when current assets turnover is 30%, it means that a company has sold worth Rs. 30 when it has invested Rs. 100 in the form of various current assets, such as short-term expenses, inventory, prepaid expenses, outstanding income, sundry debtors. and other current assets.

If a company’s net sales are Rs. 500 billion and its current assets are worth Rs. 50 billion, then its current assets turnover is as follows −

$$mathrm{frac{mathrm{Rs.500}}{Rs.50}:times 100:=:1000%}$$

It means that the company has made sales worth Rs. 1,000 for every Rs. 100 invested in the current assets.

Characteristics of Calculating Current Assets Turnover

Some of the key characteristic features of calculating current assets turnover are as follows −

Awareness of Sales power

Measuring the current assets turnover ratio helps companies stay aware of their sales power. It is significantly necessary for any company to increase the sale of their products to keep moving forward and thereby generate revenues. If the company fails to generate revenues through its products and services, chances are that it will go bankrupt soon in the near future.

Signal for Company’s Promising Future

The current assets turnover ratio is a signal for the future of the company that is measured in present terms. It provides a view into the sales figures that, in turn, can show the profitability or performance of the company in the market. Like most other financial ratios, the current assets turnover ratio is a comparative ratio that needs to be calculated in conjunction with other forms of ratios. Making a decision depending solely upon the current assets turnover ratio can be faulty as it fails to show other features of conditions of a company.

For example, the current assets turnover ratio does not show the turnover in terms of debt. So, it cannot measure the efficiency of the company to service long-term debt.

Shows Performance of the Company

There are a host of turnover ratios that are to be measured along with the current asset turnover ratio.

Some of these include −

The creditor turnover ratio

Stock turnover ratio

Debtor turnover ratio, and

Working capital turnover ratio.

Measuring the current assets turnover ratio in comparison to these ratios can show the performance of the company in a better manner.

In order to measure the return on sales, the sales return should be subtracted from net sales. This gives a true value of current sales that is applicable to the measurement of the current assets turnover ratio.


The higher the current asset turnover ratio, obviously the better it is because a higher score in asset turnover means more sales obtained for an investment of a fixed amount (usually Rs. 100). That is why the creditors look for higher current asset turnover ratios to offer loans to eligible companies.

How Are Team Work Seminars Important?

Working effectively with your team is crucial whether you work in a tiny office or a big corporation. Building stronger working connections across all facets of a company requires the capacity for open communication.

Internal divisions, clients, and management. You may create fresh and innovative ideas, enhance relationships among team members, and build trust by investing in team-building workshops. By offering team-building seminars, you may foster better communication networks that you can employ for crisis collaboration and idea generation.

Importance of work seminars

Focusing on how your team may collaborate and actually thrive as a team can empower you for long-term success. The capacity to function efficiently and optimize performance is essential to a successful team. The right position is crucial.

It’s simple to write off team building as a one-time thing or novelty. But, it’s crucial to discover strategies to keep tension in order to preserve the skills learned through team building seminars. To develop a path to success, the difficulty is to persuade individuals to engage and participate in meaningful ways outside of routine meetings and presentations.

Because of this, Afterburner is the best team-building seminar for your business. Teams who participate in seminars develop closer ties and gain communication skills through debriefing techniques. Future projects can use the techniques that Afterburner offers. The knowledge you take away from the seminar will make your team stronger in the long term, whether it’s dealing with a significant customer or crisis management.

The importance of work seminars

Here are some explanations on why and how to convey the value of workshops inside your company.

Builds trust

A successful team must have trust in each other. Employees must be familiar with and trust each other in order to function as a cohesive team. An interesting activity is team building, in which multiple teams connect through various extracurricular activities to strengthen collaboration. When a business fosters a trusting environment at work, staff members are empowered to complete tasks and take charge of their own actions.

Employees who are trusted feel confident and may more easily see their strengths and limitations. Also, it enables workers to be more proactive with their suggestions, risk-takers, listeners, and consensus-builders. With time, everyone on the team gains confidence in calling each other’s flaws out. Initially, people are pushed outside of their comfort zones by learning and acquiring completely new talents. Participants gain confidence and are able to come out of their shells when they perform in front of or as part of a group. Participants gain self-confidence and high self-esteem as they learn new skills and come to understand that they have an aptitude and gift for that ability.

Fosters better communication

People perform at their highest level and plan well when they collaborate. To work in smaller groups, discuss ideas, and complete projects quickly, divide up the labor. Employees who communicate effectively understand their roles and those of their coworkers. This fosters teamwork, facilitates collaboration in other people’s achievements, and enables individuals to support one another in reaching their objectives. But, these team-building exercises might lessen the strain. Also, it introduces coworkers and facilitates the socialization of staff members from other departments. All forms of employee interactions benefit from team-building exercises. Casual workshops and gatherings frequently help to remove barriers between employees and management. This makes it possible to open the lines of communication on both ends.

Improves performance

Activities that promote the value of task sharing in the workplace are included in team-building exercises. Employees can assist other teams with their job when they work fewer hours. This enhances project objective realization and raises the organization’s overall productivity. Employees acquire new talents that complement their existing ones through team-building exercises.

Boost team productivity, efficiency, and ultimately on-time completion of projects. When coworkers collaborate, they can generate brilliant ideas. A firm that supports open forums for creative individuals to connect and engage with one another is likely to inspire creativity, which usually enhances analytical reasoning among the members of the team and promotes new ideas to help the company progress. helps to produce.

Not only do team building workshops provide employees a terrific chance to network, but they also foster the kind of cooperation and effective communication that is necessary for the workplace. The workplace might suffer greatly from a lack of communication, but it can be readily avoided by sending staff members to team-building exercises. The main goal of team building is to get team members to know one another and better prepare them for collaboration. created and proven in actual team development seminars.

Encourages collaboration Connects remote teams

Team-building exercises are a successful technique for organizations where certain teams operate remotely to bring together all of the team members. Although remote workers nonetheless contribute to the company’s output, meeting together helps them better understand one another. People form new networks and improve the environment for remote work through these relationships.

Diversity is also promoted via team building. The majority of businesses employ people from many nations, backgrounds, cultures, and languages. The goal of team building is to create a welcoming atmosphere where individuals can celebrate their diversity, learn from one another, and discover new ways to communicate.


Recently, there have been changes in how businesses communicate with their personnel and consumer bases. Acting responsibly, enhancing our culture, and supporting our communities is more crucial than ever. Offering workers, the chance to take part in team-building exercises may be a crucial element in creating productive teams in your business. You may encourage teamwork, raise employee morale, and gain from a future team that is more productive. If a company wants to succeed, collaboration is crucial. Each individual must benefit from the team’s links with other team members in order to effectively increase cooperation, even with the help of effective team-building exercises.

Communication skills are improved through team building exercises, which are renowned for how well groups function as a unit. Many forms of working teams, including business teams, school instructors, volunteers, and medical professionals, can benefit from team-building programs. Workshops may be held off-site in conjunction with team-building activities or on-site at the place of business.

How Industrial Robots Are Innovating Various Sectors?

Robots have marked their territory across various sectors, out of which its innovations across the manufacturing industry is a worth watch. According to the International Federation of Robotics, with more than 384,000 industrial robots installed globally in 2023, robots are growing in popularity. They have become omnipresent in industrial operations and can be used for different work as well. According to the Manufacturer, one of the most significant innovations of robotics across the industrial set is an electronic skin that gives robots a sense of touch. The innovation is known as ‘Wootzkin’ and is developed at the University of Edinburgh. The electronic skin is made up of nanostructures. It also includes underlying electronics to target drug delivery or in gripper technology. Similar to human skin Wootzkin can give the robot feedback on the force, pressure, temperature, and humidity. This makes it easier for robots to complete tasks that require a high level of dexterity. Moreover, the sensitive area size can be changed, between 50 microns and 12 inches. It can be tailored to the specific needs of the application. The skin operates in temperatures from 0 – 180°C. Through this ability, a robot can perform dextrous tasks under conditions that humans cannot endure, while maintaining a delicate approach to fragile items. Furthermore, researchers at the Massachusetts Institute of Technology (MIT) have produced a kit to construct a variety of robots using only a handful of components. The MIT-kit consists of five different components, including rigid and flexible components, a coil, electromagnetic parts, and a magnet, at the five millimeter-scale. The parts can be assembled into different shapes, such as a tiny walking motor and a gear turning the robot. The research group’s goal is to expand to a purpose-built manufacturing robot built out of standard components that can be easily disassembled and repurposed. In the field of agriculture, robotic innovation is growing with leaps and bounds. Strides have been made with the creation of the Global Unmanned Spray System (GUSS), for example, an unmanned, fully automated vehicle to spray orchards with pesticides. It will bridge the shortage of workers. Reportedly, using GUSS for spraying is a more efficient way than doing it manually. As noted by the Manufacturer , GUSS creates a safer environment for workers, by reducing their exposure to the potentially harmful chemicals used in pesticides. It uses lasers and touches sensitive bumpers that allow the robot to be aware of its surroundings and immediately stop when it detects an object, eliminating the potential damage to produce and people. During the creation of GUSS, the largest issue was that GPS didn’t consistently work under the tree canopies. To overcome this, sensors and software, such as cellular connectivity, were implemented to supplement the GPS. Cellular and radio signals are transmitted to the control vehicle, operated by a person, allowing multiple robots to relay position data, statistics, and a live stream from its front-mounted camera. GUSS also gives farmers the ability to analyze all pertinent information, such as the volume of pesticides used on each plant, which can be helpful when marketing crops to buyers. Those using autonomous machines, like GUSS, will see fewer mistakes made, leading to less lost time and an increase in cost savings.

How Air Quality Tweets Are Saving Lives

Air pollution contributes to one in nine premature deaths worldwide, but this research shows how real-time monitoring can help reduce the danger. Key Takeaways

US embassies now tweet live air quality readings in 38 non-OECD countries worldwide

Sharing real-time air quality information yielded an average reduction in fine particulate concentration levels of 2-4 micrograms per cubic metre each year

Fine particulate matter is an air pollutant that can cause serious health problems such as heart disease and reduced lung function

Researchers estimate the reduction in air pollution for the median city was worth an annual $171 million in health benefits

Knowing how much pollution is in the air through Twitter notifications is saving lives around the world.

Real-time air quality readings in developing countries helped reduce air pollution and led to lower death rates, according to research co-led by the University of Queensland.

“In 2008, the US Embassy in Beijing began tweeting hourly air quality information from a new pollution monitor, which dramatically increased attention on air pollution in China,” says Dr Andrea La Nauze, from UQ’s School of Economics.

“US embassies now tweet live air quality readings in 38 non-OECD countries worldwide.

“We looked at 36 of those countries and found the sharing of real-time data increased local public interest in air quality and led to reduced air pollution levels.”

The researchers used air pollution measurements taken from satellite data to evaluate levels before and after the US embassy in a city began tweeting air quality readings and compared the results with other non-OECD cities without embassy monitors.

Sharing real-time air quality information yielded an average reduction in fine particulate concentration levels of 2-4 micrograms per cubic metre each year.

Fine particulate matter is an air pollutant that can cause serious health problems such as heart disease and reduced lung function.

The researchers estimate the reduction in air pollution for the median city was worth an annual $171 million in health benefits.

The project was run in conjunction with Carnegie Mellon University in the US.

Dr Akshaya Jha from Carnegie Mellon University says 90% of the global population is exposed to hazardous levels of air pollution, but monitoring – especially in developing countries – isn’t always available.

“Poor air quality is a leading cause of premature death worldwide, responsible for one out of every nine deaths,” Dr Jha says.  

“Sharing credible air quality information can highlight this issue and have huge health and economic benefits that far outweigh the costs of the monitoring technology.”

La Nauze says the World Health Organization last year found the state of air quality monitoring to be “inadequate”, particularly in less developed countries.

“Around 30% of countries had at least some form of monitoring by 2023, but that includes monitoring that is intermittent, only covers a small part of the country or isn’t available publicly,” La Nauze says.

“Even Australia – where state governments monitor air quality and provide access to real-time data – could benefit substantially from a denser monitoring network.

“Policymakers, diplomats and community organisations worldwide should push for the rapid deployment of credible, real-time air quality monitoring and reporting.”

The research has been published in the Proceedings of the National Academy of Sciences.

How Are Content Marketing Leaders Getting Success?

Examples of rich, long-form, long-haul, brand-led content that don’t add to the noise

Let’s face it, success in marketing generally is difficult. In digital channels we can only see this getting harder and harder. In fact research this week by EMC showed evidence that there’ll be 32 Billion connected devices on the Internet by 2023. How brands get cut-through in the volume of traffic and data on that scale is therefore huge. Of course, with all the potential, it also reveals vast opportunity for those that can get it right.

What works in this emerging reality? There’s no “one size fits all answer”, and yet rich, visual and long-form content marketing – complimenting real-time, social media and micro content – uses much higher levels of consideration and quality, it’s already demonstrating where brands can steal a march on their noisier, less considered competitors. We’ve seen long form content work wonders for brands such as Patagonia, more on that in a minute.

In a world where consumer attention and time are scarce it’s tempting to think that all content has to be created for the ADD culture. But it’s simply answered by strategy, what’s right for your brand vs your objectives. Your channels and market, and the unmet needs of your consumer base. We’d suggest a mix of micro and long form content is more likely the right obvious.

Long form content marketing?

There’s no trick to understanding the term - It’s marketing, delivered through content such as writing, audio, or video, and it’s long – meaning longer than a 30 second TV spot, a one-page magazine ad, or a billboard. Longer than a casual 200-300 written blog post. Think 1500+ words, or a 1 min+ video explainer.

It’s harder to create, more expensive, and so much more likely done poorly – therein the opportunity. Typically longer text articles with visual content embedded – for the sake of this blog post I include other in-depth content that takes time and effort. We’ve seen ebooks come and (for now) go from many brand agendas, even quality infographics have fallen out of favour amongst the deluge. Richer long form pieces such as video are now staples of a quality marketing agenda, as are next generation apps and interactives. What do all these have in common? They enable the much mooted ‘storytelling’ that marketers love at the minute. There’s a narrative – time for a start, a middle and an end – you can’t do that in micro-content.

What makes for successful rich and long form content, is there a formula? Probably, yes:

It’s always about the intended audience, your consumer, first and foremost

The brand has a purpose and a permission to talk about the subject, it’s credible because it is or because it’s designed a way to be

There’s narrative, this is why we see journalists now so popular in effective content marketing teams – they know how to source and structure the story

You, the brand, by virtue of the piece add a tangible value amongst the wider of-the-moment and Oreo-esque noise, somehow, otherwise save it ’til you do

Quality – it’s not easy or quick – quality this is what matters most in long or short form. It sets apart brands on the content landscape in terms of structure, language, design and engagement

Don’t sell

A B2B example in our very own industry is Moz’s original beginner guide to SEO is a great example, visited more than a million times, which according to Majestic SEO has garnered over 36,000 inbound links. Success, you might say?

“Content marketing is a marathon and not a sprint. The only way that brands will mature is if they stop with the tactical approach and actually take a long-term strategic approach backed by sound marketing objectives. The best indicator of content marketing effectiveness is if you have a strategy at all. It’s that simple.”

Joe Pulizzi, Content Marketing Institute

“Marathon not a sprint” – a cliche?

It may sound a cliche – but in an industry accustomed to 1–3 month campaign sprints, it’s easy to understand why quick-burst solutions, lacking in strategy and integration, also appeal to early adopters of content marketing. Brands budget this way, agencies have been designed to serve those quick bursts, the peaks of activity.

It’s about designing for the long-haul. To get traction, content campaigns need a fair amount of time, and once that starts to happen, you need the appropriate resources to continue to publish consistently and build momentum. Create a valuable channel for your brand to communicate with your consumer, increasing the likelihood of people returning to that later and of course referring that content to their networks.

Three great ideas for long haul content

Content hubs. All the rage with digital agencies with a penchant for web development, from our perspective, there’s no question that a centre-piece for a brand platform is critical as a means to drive a conversion. It’s not that there’s a specific rule as to what constitutes a hub. Our current favourite of a brand that’s truly defined itself and promotes content (albeit infrequently on low levels) it Patagonia. Their campaign, The Footprint Chronicles tracks the company’s textile chain and planetary impact – the focus on lessening the impact on the planet holds no bars. It ties beautifully to another recent campaign Worn Wear that seeks to drive an anti-consumerist approach to Black Friday – driving the message of clothing repair of long loved Patagonia items. Practically begging people to not buy more – a first and a great idea that’s on-brand and speaks to a specific audience? You’d have to think so.

Rich video content. We’ve long been in love with Chipotle’s approach to video based campaigns, as the brand pursues its quest to destroy fast food and target younger, earth conscious demographics. Check out Back to the Start and the Scarecrow hub, film and accompanying game – is there better long-form, long haul content marketing out there right now – probably not? Then there’s this beautiful piece by Qatar Airways, sponsor of for Barcelona FC. Video, once part of a wider campaign is still likely the most powerful tool to demonstrate brand narrative – it’s not cheap and yet there’s a longevity to it.

Time to get your long-form on

So what’s there to learn here? Despite our natural, human ADD deficiencies – audiences are still eager to engage with long-form storytelling when it’s worth their while, and even more so when it does something new and exciting – and relevant!

What’s more exciting to us, is that these pieces are all far from perfect. There’s so much scope to improve the output. The visuals can be as distracting as they can be inspiring. For brands, interactive long-form content provides the opportunity to be associated with powerful brand values and characteristics: innovation, design, the cool factor, quality, and – most importantly – the potential to connect with hundreds of thousands of consumers.

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