1. Money
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Net Pay


Net Pay is an employee's pay after deductions and withholding. Net pay is calculated by determining gross pay and subtracting:

  • Federal withholding
  • Any State withholding
  • Social Security and Medicare deductions
  • Any other voluntary deductions, such as insurances or charitable donations which the employee has agreed to.

An employee's net pay is the amount of his or her paycheck.

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