Gross vs. Net ��� What���s the Difference?

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Gross vs. Net �� What��s the Difference?

Do you remember getting your first paycheck? You were excited, but when you looked at it were surprised because you thought you were going to get a lot more pay for your hard work. You were confused �� like some writers get �� by the difference between gross and net pay.

Gross pay or gross income is the sum total before expenses, taxes and deductions. Employers often quote prospective employees the gross pay as an enticement, when the reality is that several subtractions will be made from it before a paycheck is cut. If you are told you will earn $40,000 a year, that��s before federal and state income taxes as well as social security, Medicare, health and dental insurance, and possibly union dues are taken out. The government cares most about your gross pay.

Net pay or net income is the actual total of what you��re paid after expenses, taxes and deductions. It��s your take-home pay. It��s what you care most about. And it��s always lower than your gross pay.

So, while you still may feel ripped off when you get that first paycheck, at least grammatically speaking, you��re a much richer person with this knowledge.

Professional Book Editor: Having your novel, short story or nonfiction manuscript proofread or edited before submitting it can prove invaluable. In an economic climate where you face heavy competition, your writing needs a second eye to give you the edge. I can provide that second eye.

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