Gross Pay
paycheckAlso known as: gross income, gross wages
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
Gross pay is what employment offers typically quote ("$80,000 salary"). To get net (take-home) pay, subtract: federal income tax withholding, FICA (7.65%), state income tax, local income tax (PA, OH, NY, etc.), pre-tax deductions (401(k), HSA, health insurance), and post-tax deductions (Roth 401(k), garnishments). For a $80K California single filer, gross is $80K, net is roughly $58K-$60K depending on contribution choices and exemptions.
Use these calculators to apply this concept
Related paycheck terms
FICA (Federal Insurance Contributions Act)
FICA is the federal payroll tax funding Social Security and Medicare. Employees pay 6.2% Social Security on wages up to ...
Net Pay
Net pay (take-home pay) is what arrives in your bank account after all paycheck deductions. For most W-2 workers, net pa...
Pre-Tax Deduction
A pre-tax deduction reduces your taxable income before federal income tax (and often FICA) is calculated. Common example...
Overtime Pay
Overtime pay is 1.5× regular wage for non-exempt employees who work over 40 hours per week (federal FLSA). Some states (...
Form W-4
Form W-4 (Employee's Withholding Certificate) tells your employer how much federal income tax to withhold from each payc...
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