Net pay
Take-home pay after federal income tax, FICA, state tax, and any voluntary withholdings.
Net pay (also called take-home pay) is what remains after all required and voluntary deductions are subtracted from gross pay. The standard sequence: subtract pretax retirement contributions (401(k), 403(b)) and pretax benefit premiums (health, dental, vision, HSA) first; compute federal income tax withholding on the reduced taxable wages; subtract Social Security (6.2% to the wage base) and Medicare (1.45% on all wages, plus 0.9% additional Medicare on wages over $200,000); subtract state income tax withholding; subtract any post-tax deductions (Roth 401(k), garnishments, charitable contributions); and the result is net pay.
For most small-business employees, net pay is roughly 70–78% of gross pay depending on filing status, retirement contribution rate, benefit elections, and state of residence. Employees in states with no income tax (Florida, Texas, Tennessee, Washington, Nevada, South Dakota, Wyoming, Alaska, New Hampshire on wages) see slightly higher net-to-gross ratios than employees in California or New York.