Gross Pay vs. Net Pay: What's the Difference?

Learn the difference between gross pay and net pay, which are common payroll terms.

For more payroll basics, check out these resources:

[READ] How to Read a Pay Stub:

[READ] Decode Your Employee’s Paycheck:

[READ] What are Payroll Taxes?

[READ] Payroll Terms You Need to Know:

[WATCH] How to Calculate a Paycheck for your Employees

Ask Gusto is a YouTube series designed to answer your top payroll, HR, and benefits questions. New episodes come out weekly — feel free to ask what’s on your mind, and we’ll answer it!

Who is Gusto, exactly? Gusto serves over 40,000 small businesses across the country with a refreshingly easy payroll, benefits, and HR platform.

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  • Comments or questions? Want to learn more? Whatever it is, we want to hear from you!

    Gusto June 26, 2020 8:24 pm Reply
  • Is there anyway to take a demo?

    Marlon Figueroa June 26, 2020 8:24 pm Reply
  • Thank you because I have my 1st job for 7 days and I have received a payslip in my email. And I don't know what to do after I get my payslip… Here from PH. Thankyou

    Work Hard in Silence Let the Success be your Noise June 26, 2020 8:24 pm Reply
  • Very helpful and creative lol

    Devin June 26, 2020 8:24 pm Reply
  • thank you gusto !!! I remember important data that is going to be very usefull !! in the coming months!!

    deli gonzalez June 26, 2020 8:24 pm Reply
  • Great style

    HAMZA ALI June 26, 2020 8:24 pm Reply
  • Thank You!

    ʟɢʍ June 26, 2020 8:24 pm Reply
  • Yes, I understood gross vs net like any good 3rd grader. Unfortunately, I can't figure out why my net is larger than my gross on my paycheck, and the internet is cluttered with garbage like your video. I'm going to guess/hope it's credit card tips… but unrealistic as that would mean I'm making bank doing a job I find 'fun'.

    Hell, this job even fills in the cash tips for me and low balls it by 50%. I think I'm going to enjoy the private sector.

    Derek Conklin June 26, 2020 8:24 pm Reply
  • I liked it immediately upon seeing the pie chart 😀

    Caracal Keithrafferty June 26, 2020 8:24 pm Reply
  • Simple and easily explained with pizza! (Great to middle school explanation.) Do you have a simple video for Making Money While I sleep for middle school?

    Monica Fay June 26, 2020 8:24 pm Reply
  • thanks gusto this was really helpful

    Aryan Shah June 26, 2020 8:24 pm Reply

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