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Home > Payroll > Pay Statements & Understanding My Pay > What Is the Difference Between Gross Pay and Net Pay?
What Is the Difference Between Gross Pay and Net Pay?
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At Leeds West Groups, we want team members to feel confident in understanding their pay and how amounts on their pay statement are calculated.

 

Quick Answer
Gross pay is the total amount you earn before any deductions. Net pay is the amount you receive after all required and authorized deductions are taken out.

 

What Is Gross Pay?

Gross pay includes:

  • Your hourly wages or salary

  • Overtime pay, if applicable

  • Bonuses, commissions, or incentive pay

  • Paid time off (PTO) or other paid leave

This is the starting amount before deductions are applied. This pay is listed under the earnings section of your pay statement.

 

What Is Net Pay?

Net pay is what remains after deductions are taken from your gross pay, including:

  • Federal, state, and local taxes

  • Social Security and Medicare

  • Benefit contributions (medical, dental, vision, retirement, etc.)

  • Wage garnishments, if applicable

Net pay is the amount deposited to your bank account or issued as a paycheck on payday.

 

Why Net Pay Is Lower Than Gross Pay

The difference between gross pay and net pay is due to deductions required by law or deductions you have authorized. All taxes and deductions are itemized on your pay statement in Dayforce.

 

Helpful Tip

Reviewing your pay statement each pay period can help you better understand your earnings and deductions and catch any questions early.

 

How to Review Your Pay Statement in Dayforce

  1. Log in to Dayforce using the Dayforce app or web login.

  2. From the Main Menu, select Earnings.

  3. Pay Statements will appear under the Earning Statements tab of the Earnings page.

  4. Select the pay date & review the details on your pay statement

 

Need More Help?
Our HR team is here to offer support and guidance. If you have questions about your gross pay, net pay, or deductions shown on your pay statement, you are always welcome to reach out. You can submit a ticket anytime by visiting: https://leedswestgroups.happyfox.com/new/

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