Gross pay definition
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
See Also:
- Time and a half definition
- What is net pay?
- Understanding pay runs
Boss your payroll with Sage
With Sage 50cloud you can simplify your payroll processes for your employees with direct deposit, paycards, or direct-deposit checks.1
1 .Direct deposit services are provided by iSolved HCM Services, LLC.