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Simple English definitions for legal terms
take-home pay
Read a random definition: book entry
A quick definition of take-home pay:
Take-home pay is the amount of money you get from your job after taxes and other deductions are taken out. It's the money you actually get to keep and use for your own needs.
A more thorough explanation:
Definition: Take-home pay refers to the amount of money an employee receives after deductions such as income taxes, social-security taxes, voluntary contributions, and union dues have been taken out of their gross wages or salary. It is the net amount of a paycheck.
Example: If an employee earns $2,000 per month and their deductions total $500, their take-home pay would be $1,500.
This example illustrates how take-home pay is calculated by subtracting deductions from gross wages or salary to determine the net amount of a paycheck.