How to Figure Your Net Pay

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The net pay is the amount of pay that is taken away after fees are taken off of a paycheck. Find out which fees are usually taken off of a paycheck, such as those for medical benefits, with advice from a registered financial consultant in this free video on money management.

Part of the Video Series: Personal Finance Tips
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Video Transcript

This is financial adviser, Patrick Munro on how to figure out your net pay. Having a job, especially if you're a young person, having a first job as a salary employee is an exciting time. When you negotiate for thee dollars per hour at your job, let's just say it's six dollars an hour, remember you have to pay taxes, and there's various fees that come off your paycheck, and the resulting amount is your net pay, thee amount of pay that you take away for your expenses. The way to calculate that is the first thing that comes out of course, always, is federal tax, and there's state tax as well. If your company pays benefits, sometimes they will charge a small fee on your paycheck for those particular benefits. So there's another charge that comes off your check. If you have to pay equipment charges in thee course of thee job that you do, they'll also deduct your paycheck for thee ongoing expenses that thee employer has. All these expenses add up and they are deducted from your gross pay to result in your net, and that's thee umm, how to calculate your net pay. This is Patrick Munro, financial adviser.

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