Net pay is the money that actually lands in your bank account on payday. It is what is left after your employer takes out taxes and other withholdings, such as pension and employment-insurance premiums. That take-home amount is the number you can actually spend or save. An $18-an-hour job will not put a full $18 times your hours in your pocket.

Related Lessons:

• Click Here for our lesson on Payroll Best Practices
• Click Here for our lesson on The Ultimate Employee Guide
• Click Here for our lesson on Income Tax Filing Tips & Tricks
• Click Here for our lesson on Achieve Financial Goals with a Spending Plan
• Click Here for our lesson on What Your Credit Report Says About You
• Click Here for our lesson on How Canadian Taxes Impact Your Personal Finances