A better expression than "after income tax deduction"

curiocity

Senior Member
Japanese
Hello, I am making an order form to present to individual workers.

I want to make a field indicating "actual amount to be paid after income taxes are deducted."

Though I titled it "After Income Tax Deduction," I am not satisfied with it because it seems somewhat awkward.

Is there anything better?
 
  • entangledbank

    Senior Member
    English - South-East England
    The net pay is the amount they really get, to take home - also called their take-home pay. 'Income tax deductions' are deductions from the gross amount (what the company says they pay you in total) which are not included in the amount income tax is charged on - such as travel expenses, or charities. You start with gross pay, take away the deductions, and that's your taxable pay. Then you deduct taxes from that. The result is net pay, which the employee keeps and can spend.

    'After deduction of income tax' says what you want more clearly than 'After income tax deduction', which is ambiguous or unclear because of the above other meaning.
     

    Egmont

    Senior Member
    English - U.S.
    The net pay is the amount they really get, to take home - also called their take-home pay. 'Income tax deductions' are deductions from the gross amount (what the company says they pay you in total) which are not included in the amount income tax is charged on - such as travel expenses, or charities. You start with gross pay, take away the deductions, and that's your taxable pay. Then you deduct taxes from that. The result is net pay, which the employee keeps and can spend.

    'After deduction of income tax' says what you want more clearly than 'After income tax deduction', which is ambiguous or unclear because of the above other meaning.
    This terminology varies from country to country. I assume it is correct for the UK tax system, but it would not be correct in the U.S. Here we have pre-tax deductions, which correspond to what entangledbank called "income tax deductions;" after-tax deductions, which may not exist as a separate category in the U.K. system; and then taxes, as in the U.K.

    The term net pay, to describe what the employee keeps and can spend, is used in the U.S. also. I just confirmed that on old pay stubs from three different employers.
     
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