- Gross pay is the amount of money your employees receive before any taxes and deductions are taken out. For example, when you tell an employee, “I’ll pay you $50,000 a year,” it means you will pay them $50,000 in gross wages.
- Net pay is the amount of money your employees take home after all deductions have been taken out. This is the money they actually get on payday.
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Want to learn more about calculating a paycheck? Then check out the video below to see how it all works.