What is defined as take home pay?
Understand the Problem
The question is asking for the definition of 'take home pay', which refers to the amount of money an employee actually receives after deductions such as taxes, retirement contributions, and other withholdings are subtracted from their gross pay.
Answer
The net amount of income received after deductions.
Take-home pay is the net amount of income received after deductions such as taxes, benefits, and voluntary contributions from a paycheck.
Answer for screen readers
Take-home pay is the net amount of income received after deductions such as taxes, benefits, and voluntary contributions from a paycheck.
More Information
Take-home pay, also known as net pay, is the income an employee receives after all obligatory and voluntary deductions are subtracted from the gross pay.
Sources
- Investopedia - Take-home pay - investopedia.com
- Merriam-Webster - Take-home pay Definition & Meaning - merriam-webster.com
- OnPay - What is Take-Home Pay? | Definition & Meaning - onpay.com
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