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Home  »  Resources  »  HR and Employee Benefits Glossary

Gross vs. Net Income

What is Gross vs. Net Income?

Understanding the difference between gross income and net income is important for employees, as it helps clarify the total earnings versus the actual amount received after deductions.

Gross income refers to the total earnings an employee receives before any deductions, such as taxes, insurance, and retirement contributions. It includes salary, bonuses, overtime, and other forms of compensation.

Net income is the amount an employee takes home after all deductions are subtracted from the gross income. It is the actual paycheck amount the employee receives.

Imagine the ease of a seamlessly connected HR system with a simple, intuitive interface.

Now see it for yourself…

Seamless Onboarding Made Easy

My Benefits Channel simplifies onboarding with a mobile-friendly, paperless system that automates tasks like e-signatures, pre-filled forms, and progress tracking.

Easily manage and store essential documents, create custom workflows, and integrate with payroll systems to make the process seamless for both you and your new hires.

Request your free demo today!

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