How do I calculate net pay for a pay stub?

Net pay is the amount an employee takes home after all deductions, such as taxes, benefits, and other withholdings, are subtracted from gross pay. 

Step 1: Start with gross pay 

Gross pay includes: 

• Regular wages or salary 
• Overtime 
• Bonuses, commissions, or tips 

Step 2: Subtract deductions 

Common deductions include: 

• Federal, state, and local taxes 
• Social Security and Medicare (FICA)
• Health insurance, retirement contributions, or 401(k) contributions 
• Other deductions like wage garnishments or union dues 

Step 3: Calculate net pay 

Gross pay – Total deductions = Net pay 

Step 4: Verify accuracy 

Ensure all hours, earnings, and deductions are correct. Accurate net pay ensures employees are paid the right amount and payroll records are compliant. 

Using SecurePayStubs 

When you input employee wages, hours, and deductions, SecurePayStubs automatically calculates gross pay, deductions, and net pay, making pay stub generation fast and accurate.