Gross Pay vs Net Pay
Gross Pay — Your total earnings before any deductions. If you earn $60,000/year, your gross biweekly pay is $2,307.69.
Net Pay (Take-Home) — What actually hits your bank account after all deductions. For that same $60K salary, take-home is typically $1,700-$1,900 per paycheck.
Common Paycheck Deductions
Mandatory (Taxes)
- Federal Income Tax: Based on your W-4 withholding and tax bracket (10%-37%)
- State Income Tax: Varies by state (0% in TX/FL/WA to 13.3% in CA)
- FICA — Social Security: 6.2% of gross (up to the annual wage base)
- FICA — Medicare: 1.45% of gross (plus 0.9% over $200K)
Voluntary (Pre-Tax)
- 401(k) / 403(b): Retirement contributions reduce taxable income
- Health Insurance Premiums: Your share of employer-sponsored coverage
- HSA / FSA: Health savings accounts with tax advantages
- Dental / Vision Insurance: Typically deducted pre-tax
Voluntary (After-Tax)
- Roth IRA / Roth 401(k): After-tax retirement contributions
- Garnishments: Court-ordered deductions (child support, student loans)
- Union Dues: If applicable to your profession
Example: $60,000 Salary Breakdown
Gross Pay (biweekly)$2,307.69
Federal Tax-$254
Social Security (6.2%)-$143
Medicare (1.45%)-$33
State Tax (est.)-$92
401(k) (6%)-$138
Health Insurance-$120
Net Pay~$1,528
Estimate Your Take-Home Pay
Use our Paycheck Calculator to estimate your net pay after all taxes and deductions, our Salary Calculator to convert between hourly and annual pay, and our Income Tax Calculator for detailed federal tax estimates.