WHAT ARE THEY DOING?!
How to Calculate Net Pay (Step-by-Step)
Start with Gross Pay
(Hourly rate × hours OR salary ÷ pay periods)
Subtract Pre-Tax Deductions
(health insurance, 401k, etc.)
Calculate Taxes
(federal, state, Social Security, Medicare)
Subtract Post-Tax Deductions
(garnishments, child support, etc.)
What’s left = Net Pay (take-home pay)
Gross → Deductions → Taxes → Your Pay