There is often confusion when it comes to terms like Gross and Net Pay. In part, this is because the average person does not deal with these terms on a regular basis.
Gross pay is the total money that your employer pays you in wages. If you are paid a salary, e.g., $2,500 a month, that is your gross salary or gross pay. Another way to calculate it is if you earn $30,000 a year in salary and are paid every 2 weeks, divide the annual salary by 26 to determine your gross salary for any pay period.
You have your net pay after all your required and voluntary deductions are subtracted.
Net pay is the amount of money you receive from your employer after all deductions have been made. In other words, the amount you see on your check. If you are on a salary, your net pay is the amount of the gross pay ($1,153.85 using the example above plus any overtime pay, bonuses, and reimbursements) minus all taxes and deductions.
Read More: Gross Pay and Net Pay: Understanding the Difference
Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business.