Earnings before payroll deductions. For an hourly worker, it is generally the hourly rate multiplied by paid hours, plus eligible additional pay such as overtime or bonuses.
Pay interpretation guide
Gross pay describes the offer. Net pay describes the deposit.
The gap between the two comes from withholding, payroll taxes, benefits, retirement contributions, and other deductions.
Definitions
What is the difference between gross pay and net pay?
Amounts removed from gross pay by law, benefit elections, retirement choices, court orders, or employer policy. Some deductions are pre-tax; others are not.
The amount left after the applicable deductions. It is the figure deposited or paid to the worker.
What changes the deposit
Two people can earn the same gross salary and receive different net pay.
Federal income-tax withholding depends on the information supplied on Form W-4. State and local rules can add another layer. Social Security and Medicare withholding follows federal payroll rules and annual wage limits.
Other common deductions
- Health, dental, and vision premiums.
- 401(k), 403(b), or other retirement contributions.
- HSA, FSA, or dependent-care elections.
- Life or disability insurance.
- Union dues, wage garnishments, or repayment arrangements.
Estimate carefully
Why a generic “after-tax” percentage should not drive a job decision
A flat percentage cannot account for filing status, state residence, pre-tax deductions, tax credits, multiple jobs, supplemental wages, or changes in withholding. Use gross pay to compare the size of an offer, then use a current payroll estimate or the employer's benefit documents to understand cash flow.
The calculator on this site includes a federal single-filer estimate and employee FICA for planning. It does not model state or local tax, credits, or individual payroll settings.
Compare offers
Normalize gross income first, then compare the deductions and benefits.
- Convert hourly pay to annual gross salary.
- Confirm guaranteed hours and paid weeks.
- List required and optional payroll deductions.
- Compare employer contributions and paid leave.
- Test a realistic net-pay range before making a budget decision.
Do not compare unlike numbers
An hourly gross rate is not directly comparable with a salaried take-home estimate. Convert both offers to the same basis before drawing a conclusion.
Primary sources