# On a pay stub, what is the difference between “net pay” and “YTD net pay”?

Net pay defines the amount of money a person has earned during a specific pay period. Year-to-date (YTD) net pay is a sum that a person has made during a year to date when net pay is calculated. Net pay show how much a person has at a defined payment time. YTD net pay helps people tracking how much they earned for the year.

## Explanation:

A person gets net pay depending on the system of salary provision in an organization. Usually, it is done every week, two weeks, or a month. YTD net pay changes every time a person is paid and is updated by the amount that was earned from the starting date of the calendar or fiscal year, usually from the 1st of January. YTD net pay helps employees and employers to analyze current state and performance data against the target period. It is also useful when determining how much a person wants to save during a year and how far from the aim is the sum. Net pay the remaining amount that is shown on a pay stub after all necessary deductions and contributions are made. It is also named as “take-home pay” because it is what a person receives as a final payment.

Take-home pay should not be confused with gross salary because net pay is calculated based on gross pay that presents a payment with deductions and withholding. Required payments, such as taxes, voluntary deductions, insurance fees, are extracted from the gross pay, and the amount left constitutes net pay on a paycheck. YTD net pay presents net pay sum calculated from the starting date of the year in the organization. Thus, net pay is a part of year-to-date net pay computed to date from the beginning of the year.

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Academic.Tips. (2020) 'On a pay stub, what is the difference between "net pay" and "YTD net pay"'. 3 April.

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References

Academic.Tips. 2020. "On a pay stub, what is the difference between "net pay" and "YTD net pay"?" April 3, 2020. https://academic.tips/question/difference-between-net-pay-and-ytd-net-pay/.

1. Academic.Tips. "On a pay stub, what is the difference between "net pay" and "YTD net pay"?" April 3, 2020. https://academic.tips/question/difference-between-net-pay-and-ytd-net-pay/.

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Academic.Tips. "On a pay stub, what is the difference between "net pay" and "YTD net pay"?" April 3, 2020. https://academic.tips/question/difference-between-net-pay-and-ytd-net-pay/.

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"On a pay stub, what is the difference between "net pay" and "YTD net pay"?" Academic.Tips, 3 Apr. 2020, academic.tips/question/difference-between-net-pay-and-ytd-net-pay/.

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