What can affect net pay?

Net pay refers to the amount of money an employee takes home after all deductions have been made from their gross pay. This can include aspects such as taxes and other benefits deductions, making the selection of tax obligations and benefits deductions the correct answer.

When an employee receives their paycheck, several deductions are commonly taken out, including federal, state, and sometimes local taxes. Additionally, various benefits may also be deducted, such as contributions to retirement accounts, health insurance premiums, and other voluntary benefits. These deductions directly reduce the gross pay to arrive at the net pay.

In contrast, while employment status could influence one’s gross pay or eligibility for certain benefits, it does not encompass all factors affecting net pay. Investment performance pertains to how an employee's investments are doing and does not factor into what they earn from their job directly. Similarly, personal expenses are separate financial matters that do not impact the calculation of net pay from an employer's paycheck. Understanding this distinction highlights the significance of the role that tax obligations and benefits deductions play in determining the net pay an individual receives.