How is net pay different from gross pay?

Question

How is net pay different from gross pay?

Answer 1

Net is what you actually get after all taxes/deductions. Gross is what you really earned.

Answer 2

gross pay is before any deductions

net is what is remaining after all deductions

Answer 3

Gross pay is the amount you actually earned before they take out taxes and Net pay is what you actually receive.

Answer 4

Gross pay is from a day to day basis or weekly net pay is monthly pay or year to year gross pay is your best choice..

Answer 5

Well gross pay is your total pay for this pay period before deductions, reductions and taxes have been subtracted. Net pay is your take-home pay after reductions, taxes and deduction have been subtracted from your gross pay. The net pay is the amount deposited into your account.

hope this helps!

good luck...♥

Answer 6

Let's say you make $10 an hour, working 40 hours a week.

Let's also say you get paid every 2 weeks.  If you work for 2 weeks, for a total of 80 hours, you'll get paid:

$10 x 80 = $800 GROSS PAY

You'll end up having some taxes withheld and maybe some other expenses like healthcare deducted, so your actual paycheck might be something like:

$800 - $160 (tax) - $50 (deductions) = $590 NET PAY

NET PAY is the amount of your actual paycheck.

Answer 7

Gross pay is the total amount of your salary.  Net pay is what you get after all the deductions (taxes, etc.).