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Net Pay is calculated by determining the gross pay, then subtracting federal withholding, any State withholding, Social Security and Medicare deductions, and any voluntary deductions, such as insurances.

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โˆ™ 2010-03-01 15:55:37
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Q: How is net pay calculated?
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Related questions

Are garnishments calculated by net pay or gross pay?

are garnishments calculated by gross pay or net pay

What is the relationship between net and gross pay?

Gross pay is calculated before taxes are taken into consideration where net pay is the amount of money you make after tax.

Is net pay the amount you earn before deductions are subtracted?

No that's GROSS PAY Net pay is what you have after ALL deductions have been calculated and subtracted

How is a gross pay calculated?

Gross pay is what your employer has agreed to pay you when you are hired. After that, when you get paid, there are various taxes etc deducted which your employer has to send to various authorities. What you receive after all this is called your Net Pay.

What is more gross pay or net pay?

Gross pay is almost always greater than net pay, as net pay is after taxes, benefits, etc. Gross pay is what the company tells you that they will pay you. Net pay is what you actually take home.

Does net net include taxes?

If looking at your pay stubs, you gross pay represents your total pay before taxes. The net pay is your pay after taxes.

How do you use the phrase net pay in a sentence?

Your net pay is what you get after you take out all of your expenses like taxes and insurance.My net pay is lower than yours.Taxes are based on your net pay.What will my net pay be on the new job?

Does not pay is called what?

net pay

Is gross pay the same as net pay?

No, net pay is your take home pay after taxes and other deductions

What is the take home pay the gross or net?

Generally, take home pay is net pay.

How are net and gross adjustments on a real estate appraisal calculated?

how are net and gross adjustments on a real estate appraisal calculated

What is net pay on a pay slip?

The amount you take home. Net pay is the gross pay less all deductions.

What are the terms gross pay net mean?

Gross pay is pay before taxes have been deducted were net pay is after taxes.

How can you use the word net pay in a sentence?

Since the economy had been doing badly, his net pay had dropped. His net pay was much less than his gross pay.

How do you use net pay in a sentence?

If you take gross pay and take out taxes and fees you are left with net pay.

What is the meaning of net effect?

The final result when all the pluses and minuses, all the gains and losses, have been taken into account. "Net" in this case means a calculated total after deductions, like your net pay. Example: When Bob had dieted and exercised vigorously all week, and then pigged out at the barbecue, the net effect was a gain of one pound.

Is net income the same as net profit?

Yes. Net income is generally calculated the same way on net profit.

How do you solve net pay?

Net pay is what remains from gross pay after all deductions, such as tax, have been made. It is your 'take home' pay.

Do individuals get taxed on the amount of their net pay?

No you do not get taxed on your net take home pay.

How do you Calculate Net Profit Margin?

Net profit margin is calculated as net income divided by sales.

What you mean by gross pay and net pay?

gross pay= the amount a person is entitled to net pay= the amount a person is given after the deductions of different taxes and insurances.

Is net pay always more than gross pay?

No ... Net pay is what you get to take home after taxes. Gross pay is your salary before taxes.

What is the best way to describe net pay?

Net pay is what you take home after all deductions.

How do you figure out how much you make by your net pay?

After getting your pay stub and calculating what you had taken out on taxes your remaining total is your net pay. Divide that amount by the amount of hours you work and that will be how much you make in net pay hourly.

What is the difference between gross pay and net pay known as-?

Gross pay is a persons pay that is including overtime, allowances and bonuses. Net pay is when it is totaled together and subtracting the gross pay from it.