You may find your job fulfilling, but at the end of the day, you work to earn a living. That income provides a roof over your head and food on your table. Discover More: Salary Needed To Achieve ...

For an hourly employee, wages can include breaks, on-call time, overtime, travel time and training. Gross pay is the starting point for all calculations related to employee compensation and taxes.

Now, let’s say they worked a 40-hour week for 52 weeks throughout the year. With an hourly rate of $28, their annual gross pay would be $58,240. What is net pay or take-home pay?

What is net pay? Net pay is the amount of money employees earn after payroll deductions are taken away from gross pay. These includes taxes, benefits, wage garnishments and other deductions.

It's important to keep track of how much you've earned throughout the tax year. Here's how net pay works and its difference from gross pay.