What is net pay? Net pay is the amount of money employees earn after payroll deductions are taken from gross pay. These includes taxes, benefits, wage garnishments and other deductions.

These deductions are the difference between gross pay and net pay. Failure to make the proper deductions from an employee’s wages or salary could get you in trouble with your staff and the IRS.

Understand net income: its definition, calculation method, and its critical role in business decisions and tax reporting.

Your pay stub illustrates the pathway from the gross income amount to the final net income total. But to get to that total, your earnings pass through a series of taxes, deductions and fees.

Learn about FICA taxes, including Social Security and Medicare, and how they impact your paycheck. Understand the current ...

Learn about the differences between gross profit and net profit and how they contribute to understanding a company's financial performance.