Net Pay
Definition: The amount of an employee's paycheck after all required and voluntary deductions have been subtracted from gross pay. Net Pay = Gross Pay − Total D…
ModerateBeginner
The amount of an employee's paycheck after all required and voluntary deductions have been subtracted from gross pay. Net Pay = Gross Pay − Total Deductions. Also called take-home pay. This is the amount actually paid to the employee.
DurationShort-Term
Related Subjects
Understand First
- Gross PayTotal pay before deductions
Components
- Required DeductionMandatory deductions from gross pay
- Optional DeductionVoluntary deductions from gross pay
External Links
- Net income — Wikipedia