Glossary definition

What is net to gross?


Net to Gross

A method for calculating a paycheck by specifying what the net amount should be (after taxes and deductions are
withheld from the employee’s wages), then calculating what the gross wages must be to achieve the specified net
The net amount is specified, along with the applicable taxes and deductions for the employee, and the gross amount that
would result in that net is determined. For this method, it is the net that is held constant and the gross varies based on the
tax and deduction options that you specify for the employee.

See also: Gross to Net.

Subscribe to the Sage Advice Newsletter

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