Bookkeeping

Gross vs net pay: A guide for employers

Gross pay and net pay are two essential concepts for employee satisfaction and business compliance. For businesses that are looking to grow and compete at the highest level, global talent is one of the best resources they can tap into. However, ensuring compliant payment of global employees presents several challenges—one of the most common being the distinction between gross vs. net pay. To calculate Michael’s net pay after FICA and federal taxes, we’ll use the IRS 2020 Semi-Monthly Payroll Period Table to determine the amount to withhold from his paycheck. Team...