The Modern Shift Podcast

Gross Pay, Net Pay, and Wage Protection Laws


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This episode focus extensively on the mechanics of employee compensation, differentiating between gross pay (total earnings before deductions) and net pay (take-home wages after deductions). Multiple texts explain the importance of pay stubs as records detailing income, mandatory withholdings like FICA (Social Security and Medicare taxes) and income tax, and voluntary contributions for benefits like retirement. A significant theme across the sources is the issue of wage theft, which occurs when employers illegally short paychecks through practices like withholding overtime, making unauthorized deductions, or misclassifying employees as independent contractors to avoid tax and benefit obligations. The texts also advise employees on how to address incorrect paychecks by documenting hours, consulting legal experts, and reporting violations to state or federal Departments of Labor. Furthermore, some states mandate that employers provide pay stubs, though federal law only requires employers to keep payroll records.

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The Modern Shift PodcastBy abdelhamid bou ikhessayen