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Gross pay vs. net pay: What's the difference?


Whether you employ hourly or salaried workers, you must understand the difference between gross and net pay. Understanding how certain deductions and your tax obligations factor into both gross and net pay can help you run a smooth payroll process.

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Gross vs. Net Pay: What’s the Difference?

Patriot Software

Although it’s natural to have payroll questions when starting out, you can’t afford to get tripped up when it comes to gross vs. net pay. Knowing the difference between gross and net pay impacts employee wages, payroll withholdings, recordkeeping, and even employer laws.

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How to Calculate Net Pay for Payroll

Patriot Software

Between taxes and benefit deductions, the employee’s take-home pay could be far from the $50,000 sticker price (cue the sad violin). To find their take-home pay, you need to know how to calculate net pay. After all, you want to […] READ MORE.

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What Is a Tax Gross up for Payroll?

Patriot Software

There might be a time you want to pay an employee a specific amount. So how can you give an employee a certain net pay? But once you factor in taxes, that amount gets smaller. Gross up for taxes. What is a gross up? A gross up is when you increase the gross amount of […] READ MORE.

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Payroll Calculation in Excel vs. Payroll Software: Which Is Better?


Calculate Net Pay: Subtract all deductions from gross pay to calculate each employee’s net pay. Record Keeping: Maintain accurate records of payroll transactions , including pay stubs and tax filings. Calculate Net Pay: Subtract deductions from gross pay to determine each employee’s net pay.

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A Handy Guide to the Payroll Register

Patriot Software

Payroll has a lot of moving parts to keep track of: employee hours, gross pay, net pay, payroll taxes, employee deductions, employer contributions, and the list goes on. Seeing all of that information in one place would be a dream come true, right? That’s where the payroll register comes in.

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Introducing FedNow: The Fed’s new direct deposit service

Business Management Daily

It takes some time for the funds to settle, although employees’ net pay usually hits their bank accounts two days before payday. Whether they can access their pay before payday is up to their banks.

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