Glossary definition

What is gross pay?

What is gross pay?

Gross pay is an individual’s total earnings throughout a given period before any deductions are made. Deductions such as mandated taxes and Medicare contributions, as well as deductions made for company health insurance or retirement funds, are not accounted for when gross pay is calculated. The gross pay definition differs from that of net pay since it does not indicate the take-home salary of an individual.

Gross pay is simple to determine. Just plug your numbers into the gross pay calculator:

Gross Pay = Net Pay + Taxes and Deductions

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