What is gross pay?

Gross pay is what you earn before anything comes out: salary or hourly wages plus overtime, tips, bonuses and commissions for the pay period. Taxes and deductions are subtracted from it to get net pay, the amount that lands in your bank account.

For salaried workers, gross pay per check is the yearly salary divided by the number of paychecks, so $60,000 paid every two weeks is $2,307.69. For hourly workers it is hours times the rate, with overtime at 1.5 times the rate. At $25 an hour for 40 hours a week, two weeks comes to $2,000.

Gross pay and taxable wages are different numbers. A 401(k) or health insurance can lower the wages that get taxed. Read the gross pay vs net pay guide or convert pay with the salary to hourly calculator. The glossary has gross pay and net pay.