SASA
Simple Tips by SASA
What is the difference between gross and net pay?
What is gross pay?
Gross pay is the total amount of money you earn before any taxes or deductions are taken out. It’s your full salary or wages, including any overtime or bonuses, before things like taxes, insurance, or retirement contributions are subtracted.​ What's left after subtraction is your net pay,
What is net pay?
Net pay is the amount of money you actually take home after all taxes and deductions are taken out of your gross pay (including retirement contributions and insurance). It’s the money that gets deposited into your bank account on payday.
What is the difference?
Gross pay is your total earnings before any deductions like taxes or benefits. Net pay is what you take home after all deductions are subtracted.
Gross and Net Pay example
In this example, we start with Gross pay at $75,000 then subtract Tax, Insurance and Retirement contributions to produce the net pay of $62,754
Track your gross and net pay with SASA
Accounting software for self employed people
With SASA you can track your self-employed income and expenses to determine how much you made before and after tax. Link your bank accounts, scan receipts, create invoices and SASA will do the rest for you to make your life easier.
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Gross pay is the total earnings an employee receives before deductions. It includes base salary or hourly wages, plus any:
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Overtime pay
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Bonuses
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Commissions
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Other income linked to employment
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Gross pay is used to calculate taxable income and financial obligations.
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It reflects the employee’s full earning potential before taxes, insurance, or retirement contributions are taken out.
