What is the key difference between net pay and gross pay

Gross pay is the amount you owe employees before withholding taxes and other deductions. Gross pay is not the amount you pay your employee. You must use gross wages to calculate your employees' net wages. Net pay is what an employee takes home after deductions

Explanation:

For example, when you tell an employee, “I'll pay you $50,000 a year,” it means you will pay them $50,000 in gross wages. Net pay is the amount of money your employees take home after all deductions have been taken out. This is the money they have in their pocket on payday.

Explanation:

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