What is the difference between a gross and a nett fare

See Today's Synonym. One of the basics of tennis is you never want to hit your ball into the net. What is the difference between net and gross when it comes to income and money? Are they synonyms that can be interchanged? As a noun, net can be defined as a mesh-like material that is typically used to divide a tennis court, protect against bugs, or catch something like butterflies, birds, or fish. As a verb, net can mean to catch, ensnare , or take with a net. But where net can get confused with gross is when dealing with numbers.

As opposed to gross , net as a noun can mean a net income or profit. For example:. This looks at the big picture sale price, while net looks at the end profit. Typically, your gross profit will likely be higher than your net profit, and what you walk away with is your net— not gross— earnings. Feedback See Today's Synonym. The cash that employees get every paycheck is their net pay , which is less than their total salary aka gross income.

Employers are required to withhold federal — and sometimes state and local — income taxes from each paycheck. The amount of money withheld as taxes depends upon the withholding rate. This depends upon the employee's tax filing status, tax bracket and the number of allowances chosen by the employee in their W-4 form.

Independent contractors, unlike employees , tend to get paid in full. It is their responsibility, rather than the client employing them, to pay their taxes on time. Companies are required to report payments made to independent contractors so that the IRS can verify if their tax returns were filed accurately and all income was reported. Gross and net leases refer to what expenses the tenant is obligated to pay in addition to the agreed upon rent.

Typically these include utility bills and property taxes. Most commercial leases require the tenant to pay for property maintenance and upkeep; insurance of the property; utility bills like power, water and sewer; and property taxes.

This type of lease is called a gross lease. A net lease is one where the tenant is only required to pay the rent. But there are other types of net lease that entail more costs:. Share this comparison:. If you read this far, you should follow us:. Diffen LLC, n. Comparison chart Gross versus Net comparison chart Gross Net Meaning The term gross refers to the total amount made as a result of some activity. It can refer to things such as total profit or total sales.

Net or Nett refers to the amount left over after all deductions are made. Once the net value is attained, nothing further is subtracted. The net value is not allowed to be made lower. Taxation Salaried people now pay income-tax on their gross income as per Income-Tax Act of Businesses and self-employed persons pay tax on their net income as per Income-Tax Act of Gross and Net profit Gross profit aka gross margin, sales profit, or credit sales is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.

Net profit aka top line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs. It is the actual profit, and includes the operating expenses that are excluded from gross profit. In the context of weight, net refers to the weight of the actual product without the packaging.