<topic sku="core" tNum="287961" author="leighanw" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn the difference between gross pay and net pay</title><category>accounts</category><klink type="cncpt">Tell me the difference between gross pay and net pay</klink></index>
<content>
<p>Your paycheck shows two income amounts: your gross pay and your net pay for that pay period.</p>
<p><emph>Gross pay.</emph> Gross pay is the amount of money you earn from your employer before deducting taxes and other withholding, such as Social Security, Medicare, payments for health insurance, and contributions to your retirement account, pension fund, and savings account. Tracking each of these deductions in Money will help you with tax information and planning.</p>
<p><emph>Net pay.</emph> Net pay is the amount that is left after the taxes and other withholdings are deducted. This amount is often called take-home pay.</p>
