Gross vs. Net Income

Gross income is total earnings before any deductions, including wages, salary, bonuses, commissions, and other compensation. Net income is what remains after all deductions: federal and state income tax, FICA, pre-tax benefits, post-tax benefits, garnishments, and any other withholdings. The difference between gross and net for a typical U.S. employee runs 25-35% depending on tax bracket, state, and benefits elections. Employees see both figures on every pay stub.