Gross pay is the total amount an employee earns before deductions, while net pay is the amount the employee actually receives after taxes and other authorized deductions are withheld.
Gross pay may include regular wages, overtime, commissions, bonuses, and other forms of compensation. Before payment is issued, employers must subtract required payroll taxes, benefit contributions, retirement plan deductions, and any authorized wage garnishments.
Understanding the difference between gross and net pay helps employees read their pay stubs correctly and allows employers to ensure payroll calculations remain accurate and compliant with applicable laws.
Inglés
