By Tom Douglass
There may be times when you get your paycheck and you thought it was going to be more than what you actually received.
Gross Pay is the amount paid to an employee before taxes and other deductions are taken out. This pay is calculated by the number of hours you work times a base hourly rate or based on a fixed salary.
Net Pay is the total amount an employee takes home after deductions such as taxes, expenses and insurance.
To summarize, Gross Pay is the money you actually earn and Net Pay, is what you have left over after any deductions are taken out.
It is important to know the difference when you are planning a budget or even negotiating for a new job.
Visit www.1099-etc.com for more information.
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