Net Wages Definition
Net wages are the amount an employee receives once gross wages have been reduced by deductions and taxes.
Net Wages Extended Definition
Also known as “net pay,” “net income,” or “take-home pay,” an employee’s net wages are what they bring home after subtracting taxes and other deductions from their gross income.
Taxes and deductions include:
- Federal, state, and local income tax
- Medicare and Social Security taxes
- Health and dental insurance premiums
- Retirement contributions
- Contributions to flexible spending accounts
Last Updated By
Jenna Hutkowski | Apr 28, 2023