Lesson 5.3 Learning Assessment: Voluntary and Involuntary Deductions

  • What is Gross Pay?

    "Gross pay is comprised of employee compensation for work performed in the course of the regular duties of a job or assignment." Gross pay refers to the regular wage you make per hour before the taxes, medical and health insurances are taken out. So they don't show any deductions of what is being taken out.
  • What is Take-Home Pay?

    "Net pay is the amount of earned wages that workers actually take home each pay period." Net pay shows the deductions that are being taken out per paycheck or salary. Depending on the state you live in.
  • Difference of Take-Home Pay and Gross Pay for Nurses

    "When someone is employed, his/she earns a pay check. Most often, the pay comes in an hourly rate or a salary. " If you take it to the level of hourly wages: gross salary is $32.66 an hour, take-home pay is $7.50 an hour.