How to Calculate My Net Paycheck

Check your pay stub to ensure your net pay is correct.

Hourly employees are paid based on the number of hours worked within the pay period; salaried workers are generally paid a firm wage each pay date. Your gross pay is your total pay before any deductions occur. You may notice that your paycheck stub reflects different amounts for your gross and net (take-home) pay; the latter is less than your gross pay. You net pay depends on your gross pay and deductions.

Things You'll Need

• Paycheck stub

Instructions

1. Determine your gross pay. Say, for instance, you earn $12 an hour, your pay frequency is weekly and you worked 40 hours in the workweek.

   Calculation: 40 hours x $12 = $480, your weekly gross pay.

2. Subtract involuntary (statutory) deductions from your gross pay. This includes federal income tax; state/city/local income tax, if applicable; Social Security and Medicare taxes; and wage garnishment and child support amounts, if applicable.

3. Subtract voluntary deductions. This includes retirement contributions; parking fees; union dues; and medical, dental, life and disability insurance. The result is your net pay.

References

• MedHunters: Understanding Your Payroll Deductions

Resources

• Paycheck Calculator