Gross & Net Pay

Learn about the relationship between gross and net pay in the Argyle API.

Income fields in the payouts endpoint

Different payroll solutions provide a varying level granularity of information when it comes to a user's income. At Argyle, we provide the information as-is without making assumptions or additional calculations.

After analyzing large amounts of data, we have determined the most common relationship structure between income fields in the payouts endpoint:

Gross pay

The standard gross pay formula is:

gross_pay = bonuses + commission + overtime + [remainder]

  • bonuses, commission, and overtime are all counted into gross_pay.
  • [remainder] is usually not explicitly displayed as a separate field but this would normally be a user's base pay for the payout_period.
  • reimbursements are most often displayed as being in addition to gross_pay.

Net pay

The standard net pay formula is:

net_pay = gross_pay + reimbursements - deductions - taxes - fees

To get from gross_pay to net_pay, we need to subtract deductions, taxes, and fees.

The subtractions are made from a combined value of gross_pay + reimbursements (reimbursements might also be taxable, deductible, etc.).

Example

Below is an example of income numbers that fit the formulas described above.

  • bonuses = $100
  • commission = $200
  • overtime = $300
  • [remainder] = $3,000
  • gross_pay = $3,600
  • reimbursements = $400
  • deductions = $500
  • taxes = $1,000
  • fees = $0
  • net_pay = $2,500

You can learn more about each of the API data fields discussed in this guide in the API Reference