Net Pay
Ron explains in 60-seconds with no BS
So what is net pay, really?
Net pay is the amount of money you actually take home on payday - after taxes, deductions, insurance premiums, retirement contributions, and anything else your employer pulls out.
It’s your real paycheck, not the one your salary says you earn. The bigger number at the top of your pay stub? That’s gross pay.
Net pay is what’s left once reality kicks in. It’s the number that matters when you’re budgeting, paying bills, or trying to figure out how many tacos you can afford this week.
If gross pay is your fantasy salary, net pay is your financial reality and it’s usually smaller than you hoped.
Net pay is that moment when you look at your check and say, ‘Wait... where did the rest go?’
How people actually use it in a sentence...
“Luis was thrilled about his $70K salary… Until his first net pay hit and he realized he couldn’t even afford the office vending machine.”
Did you know...
In the Middle Ages, some workers were paid in bread or ale. Basically, your “net pay” was whatever didn’t get spoiled, stolen, or taxed by the local lord.
Makes you feel at least a little better, right?
Want the textbook definition? Check out Net Pay on RunaHR.com