Why is my net salary different from my payroll report

T

tonny

Member
I am calculating monthly payroll, but the net salary shown in the payroll summary doesn't match the employee payslip.
The deductions and allowances seem correct, but the final amount is still off by a few hundred rupees.


Can someone explain why this difference happens and how to fix this mismatch?
 
The difference between your net salary and payroll report can be explained by the fact that:
Gross pay has been presented in the report, and net pay is net of deductions.
PF, insurance, loans, or LOP, cut your cheque.
Certain allowances/reimbursements are indicated but not paid during the month.
The money that employers pay reportedly does not go to your net salary.
 
Your net salary is different from your payroll report because your net salary is the take-home pay received after deductions like taxes and benefits contributions, while the payroll report often shows gross pay (your total earnings before any deductions). The difference is due to mandatory deductions (such as taxes) and voluntary contributions (like retirement plans or loan repayments), which are subtracted from your gross salary to arrive at your net salary.
 
Your net salary is different from your payroll report because the report usually shows your gross pay (what you earned before any deductions), while your net pay is what actually hits your bank account.
The difference usually comes from:
  • Taxes (federal, state, local)
  • Social Security & Medicare
  • Health insurance premiums
  • Retirement contributions
  • Any other deductions (HSA, garnishments, etc.)
 
Your net salary and your payroll report do not match because net pay is the amount that you "take home" after all the deductions have been made, while the report indicates your gross pay, which is the total amount before the deductions have been made.
 
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