Net salary

Net salary is the amount of take-home pay remaining after all withholdings and deductions have been removed from a person’s salary.  The residual amount is then paid to the employee in cash. The deductions that can be taken from gross pay to arrive at net salary include (but are not limited to) the following:

  • Federal income tax
  • State and local income taxes
  • Social Security tax
  • Medicare tax
  • Health insurance deductions
  • Flexible spending account deductions
  • Pension deductions
  • Repayment of company loans or advances
  • Charitable donation deductions
  • Garnishments

Related Courses

Human Resources Guidebook 
Payroll Management