Gross & Net Pay

Front

What is Gross Pay?

Back

Gross Pay is the total amount of money earned by an employee before any deductions are made.

Front

What is Net Pay?

Back

Net Pay is the amount of money an employee takes home after all deductions (like taxes and benefits) have been subtracted from Gross Pay.

Front

How do you calculate Gross Pay for hourly workers?

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Gross Pay = Hourly Rate x Total Hours Worked.

Front

What is Overtime Pay?

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Overtime Pay is the pay received for hours worked beyond the standard workweek, typically calculated at a higher rate.

Front

If an employee works 40 hours a week, how many hours are considered Overtime?

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Any hours worked over 40 in a week are considered Overtime.

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What is the formula to calculate Overtime Pay?

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Overtime Pay = Overtime Hours x Overtime Rate.

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What does it mean to be paid Biweekly?

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Being paid Biweekly means receiving a paycheck every two weeks, resulting in 26 paychecks per year.

Front

If Lucy earned $493 plus $525 in tips, what is her Gross Pay?

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$1,018.

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If Joe worked 35 hours at $17.25 per hour, what is his Gross Pay?

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$603.75.

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What are common deductions from Gross Pay?

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Common deductions include federal and state taxes, Social Security, Medicare, and health insurance premiums.