Chapter 5: Net Pay
5.1 Overview
In this chapter, you will bring together your knowledge from Chapters 3 and 4 to understand how to calculate net pay. Calculating net pay accurately is a key payroll function and ensures that employees are paid correctly. Accurate net pay calculations also ensure that payroll meets the deductions obligations required by law or agreement.
In this chapter, you will list the necessary steps to calculate net pay and review scenarios that require you to understand 1) how gross pay is calculated, 2) how source and non-source deductions are determined, and 3) how net pay brings these elements together.
Specific Learning Outcomes
Upon successful completion of this chapter, you will be able to
- List the necessary steps to calculate net pay
- Calculate net earnings for different scenarios
Image Credit
Man holding paycheque
