Net Pay
Net Pay is an employee's pay after deductions and withholding. Net pay is calculated by determining gross pay and subtracting:
An employee's net pay is the amount of his or her paycheck.
- Federal withholding
- Any State withholding
- Social Security and Medicare deductions
- Any other voluntary deductions, such as insurances or charitable donations which the employee has agreed to.
An employee's net pay is the amount of his or her paycheck.
