Question 1

What is the difference between gross pay and net pay?

Accepted Answer

Gross pay is the amount you earn before anything is taken out. Net pay (also called take-home pay) is what's left after taxes and deductions — that's what shows up in your bank account.

Question 2

What is taxable income?

Accepted Answer

Taxable income is the part of your pay that taxes are calculated on. It's usually your gross pay minus pre-tax deductions like 401(k), health insurance, and HSA contributions.

Question 3

Do pre-tax deductions lower taxable income?

Accepted Answer

Yes. Money you put into a 401(k), HSA, FSA, or pre-tax health insurance reduces your taxable income, which can lower the taxes withheld from your paycheck.

Question 4

Why is my take-home pay lower than I expected?

Accepted Answer

Federal, state, and local taxes, plus Social Security and Medicare, can take 20%–35% of gross pay depending on income and location. Pre-tax and post-tax deductions reduce it further.

Question 5

Is direct deposit split based on gross pay or net pay?

Accepted Answer

Net pay. Your employer can only deposit money that's actually left after taxes and deductions, so the split runs on take-home pay.

Question 6

What does remainder mean in direct deposit?

Accepted Answer

One account can be set as the 'remainder' destination. After fixed amounts and percentages are sent to other accounts, whatever is left over goes there.

Question 7

Why doesn't my allocated amount match my full paycheck?

Accepted Answer

If your fixed amounts and percentages don't add up to 100% of your net pay and no account is marked as the remainder, the leftover money has no destination. Add a remainder account or adjust your amounts.

See what you really take home — and where it goes.

How we calculate this

Assumptions and limits

Frequently asked questions