Question:
What is the relationship between gross pay and net pay?
Posted By Admin @ September 03, 2022
What is the relationship between gross pay and net pay?
Gross pay and net pay are terms given to your pay before and after deductions. Let’s say you make $10 an hour and worked for 10 hours for 1 week. Your gross pay would be $100. After taxes, deductions for insurance, retirement/401K, etc., let’s say what you had left was $65. What that means is that $65 would be your net pay. “Net pay” is sometimes called “take home pay” because it’s what is left for you after all the necessary subtractions.