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What is gross to net?

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.

 

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