Glossary definition

What is gross to net?


Gross to Net

The standard method of calculating a paycheck. Gross payroll is the employee’s wages before taxes or deductions. Net payroll is the employee’s wages after taxes and deductions. For gross-to-net payroll, one or more earnings amounts (such as regular pay and overtime pay) are specified along with the taxes and deductions for the employee, and a net pay amount is calculated.

See also: Net to Gross.


Subscribe to the Sage Advice Newsletter

Get a roundup of our best business advice in your inbox every month.