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$ Business Financials

Teens · Money basics

Reading your first paycheck

What gross pay, net pay, and withholding actually mean.

7 min read
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You earned $400 gross. Your stub shows: federal income tax $32, Social Security $24.80, Medicare $5.80, state tax $12. What's your net pay?

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Subtract everything from $400: $400 − $32 − $24.80 − $5.80 − $12 = $325.40.

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Business Financials provides educational information only and does not provide financial, tax, investment, or legal advice.