Net Salary
Every working person knows that net salary is the number that remains after taxes and other deductions are calculated. Some people may think that this figure is simple to understand, but it actually includes a lot of complex calculations. In reality, there are a handful of possible ways for employers to calculate an employee's net salary.
For simplicity's sake, to calculate the net salary, take your gross pay and subtract all deductions like income tax and health insurance.
Net salary is usually expressed as an annual amount. As per the IRS, withholding amounts on a paycheck can be found by first calculating gross income and then deducting items such as federal and state income tax, Social Security and Medicare tax, etc.
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