The difference between gross and net pay are the deductions that are withheld from a paycheck. Gross pay is the total amount of money earned. For example: with an hourly rate of $10.00 per hour and a work week of 40 hours, the gross pay would be $400. Net pay is the amount of pay that is actually paid to the employee after any deductions. Deductions would include taxes, health insurance,
. retirement plans, profit sharing, etc. Using the same example from above: with a gross pay of $400 and deductions of $60, the net pay would be $340.
