Question

What is the relationship between gross pay and net pay?

Answer 1

Gross pay and net pay are terms given to your pay before and after deductions. Let’s say you make $10 an hour and worked for 10 hours for 1 week. Your gross pay would be $100. After taxes, deductions for insurance, retirement/401K, etc., let’s say what you had left was $65. What that means is that $65 would be your net pay. “Net pay” is sometimes called “take home pay” because it’s what is left for you after all the necessary subtractions.

Answer 2

The relationship would be that they both have to do with texes. Like they both take money and bring money in and out!

Gross Pay - The very top number on your paycheck. Your salary or hours multiplied by pay rate.

Net Pay - Gross Pay less everything taken by everyone else. Normally, the "taken" part is restricted to "involuntary" taking. Taxes and things. If you are having a loan payment taken from your paycheck, that doesn't count.