Gross Pay
Definition
An employee's total earnings for a pay period before any deductions for tax, benefits or other withholdings. Net pay is what remains after those deductions.
Related Terms in Payroll
Net Pay
The amount an employee actually receives after all deductions — taxes, social contributions, benefits and other withholdings — are taken from gross pay. Also called take-home pay.
Payroll Run
The process of calculating and paying employee wages for a period, including computing gross pay, deductions and net pay, and generating payslips and payment instructions.
Pay Period
The recurring span of time over which employee pay is calculated — weekly, fortnightly, semi-monthly or monthly. It sets the cadence of payroll runs and affects how annual amounts are prorated.
Payslip
A statement given to an employee each pay period detailing gross pay, individual deductions, and net pay, along with year-to-date totals. Many jurisdictions require employers to provide one.
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