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  • Hey Jim, why was my net pay less than my gross pay ?
  • Well Jeff that is a very simple question right there.
  • Gross pay is what you would get if you didn't have taxes. But since you have to pay taxes, they take part of your paycheck. But you can also have electives taken out, which would be something like health insurance
  • And net pay is your pay after they take out the tax money.
  • I understand now!
  • But do I have to pay tax?
  • Sadly, Yes. Or you can risk being hunted down by the IRS
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