Browse earnings, overtime and pay adjustment codes.
Net pay is the amount left after payroll applies employee taxes, deductions and any relevant cash adjustments. A net-pay figure can be split across several bank accounts. It is not the same as taxable wages or the balance of a benefits account.
How to read this entry
Use the meaning Take-home pay alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
With $2,000 gross cash pay, $320 employee taxes and $180 deductions, net pay is $1,500. Deposits of $1,200 and $300 can therefore reconcile to one statement.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
Check all deposit allocations and any paper check. If the calculation includes noncash benefits, identify the corresponding noncash offset.
Compare related entries
Read the earnings, overtime and pay adjustment codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on earnings, overtime and pay adjustment codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.