Net Pay Advance

Include payroll deductions on the employee's paycheck stub.Include payroll deductions on the employee's paycheck stub.

Comstock Images/Comstock/Getty Images

Even if you hire an employee for just one day, you must pay him through your payroll system. To compensate the employee, start with her gross pay, which includes wages, bonuses and other compensation, then perform payroll deductions. The result is her net pay.


An employee’s gross pay is her wages before you take any deductions out. Gross pay includes all types of compensation, including regular wages; overtime pay; bonuses; commissions; severance pay; and paid benefit days such as vacation, bereavement and sick pay and holidays. Her net pay is her wages after mandatory, or legally required, deductions and voluntary deductions.

Taxable Wages

Before you deduct from gross wages, figure the employee’s taxable wages. Pretax deductions such as for qualified medical, dental, life and vision insurance; 401(k); and flexible spending accounts; are not taxable, so deduct them from the employee’s pay before you withhold the tax in question. Also, specific wages such as qualified business expense reimbursements for meals, mileage and lodging are nontaxable.

Related Reading: Net vs. Gross Payroll

Tax Withholding

By law, you must take federal income tax, Social Security tax, Medicare tax, and applicable state and local taxes from your employees’ paychecks. To withhold federal income tax, apply the Internal Revenue Service tax table that goes with the employee’s filing status, wages after allowances and pay period. As of 2013, withhold Medicare tax at 1.45 percent of all taxable wages; an additional 0.9 percent goes for employees whose income exceeds $200, 000 for the year. Deduct Social Security tax at 6.2 percent of wages up to $113, 000 for the year, as of 2013. You may obtain federal employment tax rates from IRS Circular E, the Employer’s Tax Guide. If applicable, use your state and local tax agency’s guidelines for state and local income tax withholding.


Mandatory deductions may include other types of deductions required by state law such as state unemployment tax and state disability insurance, plus those mandated by local laws such as school district tax and city income tax. A wage garnishment is a mandatory deduction; if you receive one against an employee, you must honor it.

After-Tax Deductions

Subtract voluntary deductions that are not pretax from the employee’s pay after you withhold taxes. These deductions may include health and life insurance and retirement plans paid with after-tax money, paycheck advances, union dues and wage garnishment. The rest of the employee’s wages is her net pay.

Payment Submission

Submit payroll deductions to the proper agencies and companies according to their criteria. Employers typically deposit federal withholding taxes to the IRS on a semiweekly or monthly basis. If you have annual liabilities of $1, 000 or less, the IRS might permit you to pay annually when you file your tax return on Form 944.

Interesting facts

  • If fixed rate mortgages(FRM) are noticed in advance a compensation the so-called "early repayment charge" or "redemption penalty" has to be paid. If the interest rates have fallen, the creditor has an interest loss due to the notice. But if the rates are higher the creditor will gladly accept the early repayment or will even grant the...

Additional information

ADP.Total.Pay.Card Payday cash advances - All The
ADP.Total.Pay.Card Payday cash advances - All The ...
Baoji Juniors Girls' Tank Top Kids Net Ball Gowns Pageant Dresses 12 US Mint
  • Before you place the order,please check the size chart on our website. If the stardard size doesn t fit you,you could email us and provide the custom made size in...
  • If the color of the dress is not your style, you also could contact me in advance, we accept to custom made the color you want.
  • If you need the dress urgently, please pay for the express freight and email us you deadline,we will try our best to send the dress in time.
  • The dress is floor length little Girls Ball Gown Pageant Dress
  • Dry Clean Only!
Smart Weigh Smart Weigh CSB2KG Cuisine Digital Kitchen Scale with Removable Bowl, 2kg by 0.1g, Black
Kitchen (Smart Weigh)
  • Precision - Smart Weigh offers a scale that combines the highest grade precision using the latest technology with easy to use functions for an accurate weight each...
  • Features - The Smart Weigh Digital Kitchen Scale has a stark contrast blue backlit LCD Display and extra-large digits that make it easy to read in all light conditions...
  • Convenience - An extra-large weighing platform provides ample space to weigh larger items. Also included is a removable bowl with a pour spout for efficient liquid...
  • Accuracy - Manufactured with high precision sensors to provide the most accurate weight readings. Powered by two AA batteries. This scale will please any culinary...
  • Measurements - Includes two necessary unit measurements Grams (g) and ounces (oz) for easy weight translations. The craftsmanship is of superior quality making it...
Amico 24-22V 1/2PT Thread Green LED Signal Indicator for Electrical Circuit
Home (Amico)
  • Product Name : LED Indicator Light;Voltage : 24-22V
  • Thread Dia : 21mm/ 1/2PT;Material : Plastic, Electric Components
  • Main Color : Black, White,Green;LED Color : Green
  • Size : 5.5 x 3cm/ 2.2 x 1.1 (L*D);Net Weight : 20g
  • PakcageContent : 1 x LED Indicator Light
Weiai Big Girls' Halter Crystal Body Ball Gowns Net Pageant Dresses 4 US Blue
  • Please check the size chart on our website. If the stardard size doesn t fit you,please send me your actual measurements: chest/waist/shoulder to hem(dress length).
  • If the color of the dress is not your style, you also could contact me in advance, we accept to custom made the color you want.
  • If you need the dress urgently, please pay for the express freight and email us you deadline,we will try our best to send the dress in time.
  • The dress is a ball gown style and you need to prepare a petticoat to make it more puffy.
  • Hand made pageant dress,dry clean only.
Search Buy Store Wireless Handheld Visible laser Barcode Bar Code Scanner Reader 24G USB
CE (Search Buy Store)
  • Technical Parameters Input Voltage DC 5V±5% Power: 258mw (Operating Mode); 100mw (Standby Mode); 380mw (Peak Power) Power Supply: Lithium Batteries Current: 50ma...
  • Depth Of Scanning Field: 0.8 -3.5 (0.1mm Bar Width); 1.2 -15.7 (0.3mm Bar Width) Scanning Width: 2 -12 Decoding Rate: 120 Times/Sec Bar Width: Minimum 0.1mm (4mils)...
  • 11, MSI/PIESSEY, K/PLESSEY, CC/EAN128 Code And So On. Prompting Mode: LED, Beep Sound System Interfaces: USB Bluetooth Adapter Trigger Mode: Trigger Buttons, Automatic...
  • Operating Humidity 0 To 95% Communication Mode: Bluetooth 2.0 2.4GHz ISM Package Include: 1 X Portable Scanner, 1 X 2.4ghz Receiver, 1 X USB Cable, 1 X English User...
  • 30 days return guarantee buyers pay for return shipping 15% restocking fee for all returned opened item