Paystub terms

Gross pay vs net pay.

Gross pay is total earnings before withholding and deductions. Net pay is what remains after those amounts are taken out.

Gross pay

Gross pay is the starting amount. On an hourly stub, it usually comes from rate multiplied by hours. On a salary-based stub, it often comes from the current salary allocation for the pay period.

Net pay

Net pay is the take-home result after taxes and deductions are removed. This is why net pay is usually lower than the gross amount shown earlier on the stub.

What changes the difference

Federal withholding, state withholding, local taxes, and other deductions all affect the gap between the two amounts. The exact mix depends on the paystub setup used for that employee and pay period.

Why it matters in review

When a stub is reviewed, one of the first checks is whether the path from gross pay to net pay is readable and internally consistent. If that relationship is unclear, the document is harder to review.