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Difference between gross wages and net wages

Gross pay is the amount of money your employees receive before any taxes and deductions are taken out. For example, when you tell an employee, “I’ll pay you $30,000 a year,” it means you will pay them $30,000 in gross wages.

Net pay is the amount of money your employees take home after all of the deductions have been taken out. This is the money they have in their pocket when they get paid on payday.

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