Net monthly income refers to the paycheck employees receive from their employers. Employers deduct taxes and Social Security contributions before creating checks for their employees.Know More
Employees who work multiple jobs get multiple paychecks. In order to determine their net monthly income, they must add the net income from both checks together.
A person who is not an employee has a much harder time determining his net monthly income. When clients make payments to him, the deductions have yet to be processed. Instead of net monthly income, the checks received from his clients reflect gross income. After filing quarterly taxes, the person can then estimate his net monthly income by utilizing the financial documents submitted to the Internal Revenue Service.Learn more about Financial Calculations
Gross income is the income of an individual or business before payroll taxes are deducted. A typical employer deducts an employee's federal, state and local tax amounts from gross income, which leaves net income as the take-home pay amount.Full Answer >
The term "net price" refers to the cost of something minus the price of anything that lowers the total dollar value a consumer actually pays, according to U.S. News & World Report. The term is most commonly used by colleges and universities.Full Answer >
Accounting Tools from CPA Steven Bragg indicates that the formula for net credit sales is sales on credit in a given period minus sales returns and sales allowances. If a company has $100,000 in net credit sales but experiences $34,000 in returns and allowances, its net credit sales are $66,000.Full Answer >
To calculate net purchases, add all purchases and freight-in, or shipping, together to get gross purchases and then subtract purchase discounts, purchase returns and allowances from gross purchases. This process yields the net purchase total, according to Simplestudies.Full Answer >