Is Salary Before Or After Taxes?
Salaries are usually calculated before tax, unless specifically expressed otherwise. Before tax salaries are listed as Gross salaries, while the Net salary is what is calculated after tax. A total employee compensation, on the other hand, is what is calculated after the benefits are added. It may be healthcare, housing, car, fuel, stock options or general expenses. Costs like government-required deductions and payroll tax will also impact your final Net salary. If you want to find out what your hourly rate is, and you are a full-time employee, divide the annual gross salary by 2,080 hours (40 hours per week x 52 weeks).