In this contract what does net of mean? is it the amount after or before taxes?

Award – Cash awarded to a Participant under the Program, net of all required federal and state withholding taxes, due to Corporate or Business Unit performance and results.

Also seen in the salary section: "Salary of $2,500 payed semimonthly net of all required withholding and remissions"

The reason I am asking is because I have never seen the net pay instead of gross pay on a contract for a new job. Will I get that amount on my bank or will taxes be deducted to this amount?

  • 1
    This wording is often used for postings made to an international audience - because someone living in the UK may not be able to appropriately estimate net take-home pay while working in Singapore. In such cases, it is somewhat common for employers to cover any difference in taxes owing between such jurisdictions. For example, a company with a branch in Australia and a branch in Germany might offer a contract position for a person in Australia to travel to Germany - to ensure the person gets their expected compensation, the company could pay them enough so that they have the same net pay. – Grade 'Eh' Bacon Jan 26 '18 at 15:02

net of all required federal and state withholding taxes

Means "what's left after federal and state taxes have been withheld".

  • Might also be useful to define net as "gross minus deductions" (where gross is a fancy word for total because English loves to borrow words...) – corsiKa Jan 26 '18 at 7:12

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