Investing and Financial Markets

How is net pay calculated?


Top Answer
User Avatar
Wiki User
2010-03-01 15:55:37
2010-03-01 15:55:37

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.


Related Questions

are garnishments calculated by gross pay or net pay

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

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

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?

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.

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.

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

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

Generally, take home pay is net pay.

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

It is taxes and benefits.Gross pay - taxes + benefits = net pay.

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

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

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

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

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

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

gross pay: the amount made before taxesnet pay: the amount after subtracting taxes and benefit from your gross pay

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

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

Net pay is what you take home after all deductions.

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

The wages you earn are your gross pay. After taxes and everything else is removed from your paycheck, what remains is your net pay.

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.

The difference between gross pay and net pay is that gross pay is the amount that you receive before tax deductions and pay net is the money you take home after all the tax deductions

Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.