Net Pay
The amount of money an employee takes home after all deductions — including federal and state taxes, Social Security, health insurance, and retirement contributions — are subtracted from gross pay.
Examples
- Paycheck amount after tax withholdings
- Direct deposit amount received bi-weekly
- Gross pay minus all mandatory and voluntary deductions
- Year-end W-2 showing total net compensation
Related Terms
The total amount of money an employee earns before any deductions such as taxes, insurance premiums, retirement contributions, and other withholdings are applied.
The process of managing and overseeing employee benefit programs such as health insurance, retirement plans, paid time off, and wellness programs, including enrollment, compliance, and communication.
A policy that provides employees with a bank of hours or days that can be used for vacation, personal time, or sick leave, offering flexibility in how time off is used.
Start your free trial today
Join 1,000+ companies using Hirebee HRMS. No credit card required.