Learning the difference between salary and take-home pay 🤑

Are your paychecks lower than you thought they'd be? That's probably because of the deductions from your salary that go towards other things. After those deductions, you're left with your take-home pay!

[@Ova-bv4os]

When I got my first pay as a young teen I also assumed the per hour rate was what I would get. I knew all about the deductions, but I assumed the per hour already accounted for it lol because what's the point of telling me the gross? I live in UK btw so all the tax is automatic

[@johanna6924]

Well in Germany the amount you "give" From your paycheque is depending on different Things; what healthensurance you have, If you are married, have children and If you are member of church

[@crazydragy4233]

in LT it's always advertised as pay before taxes, so it's clear

[@ro.demigodcos]

How are you even in the tax bracket? If you earn something like less than £25000 a year you don’t pay tax, so you would be taking home all of what you earned

[@johanna6924]

@@ro.demigodcos I Wish

[@Ova-bv4os]

@@ro.demigodcos i should have said my first job was at 16 in ireland, in uk since 21

[@SaltusC]

In Germany its Brutto (what you earn) and netto (what remains after taxes, insurance and other expanses)

[@lauramarschmallow2922]

also normally you get paid monthly, not weekly.

[@autumnbreeze_official]

Same here in the Netherlands but Bruto

[@autumnbreeze_official]

​@@lauramarschmallow2922 purely depends on your contract

[@lauramarschmallow2922]

@@autumnbreeze_official of course, everything depends on your contract. And I do know people who get their salary paid fortnightly, but the vast majority of people I know get paid once a month.

[@autumnbreeze_official]

@@lauramarschmallow2922 when I worked through an employment agency I got paid weekly. When I worked for companies themself I got paid monthly

[@SignedWithBlood]

Gross wages: all before taxes and deductions. Net wages: whatever is left.

[@carultch]

Gross = add up only the positive, and ignore all the negative Net = add up everything accounting for its applicable direction.

[@dragontiger624]

A candian finnance person 🎉🎉🎉🎉🎉🎉🎉 i am ridulously happy😂😂

[@StreetCents]

👋🇨🇦

[@Funkteon]

Orrrr, you could just live in Australia and earn more money, pay less tax, not have to live next to the Yanks, deal with WAAAAAYYY less homeless on the streets, STILL have universal free healthcare and have rent that isn't 60% of your take-home pay if you want to live in the city (for context, I live one block from Brighton Beach in Melbourne, which has been voted a dozen times the world's most livable city) in a gorgeous 1930's English Tudor home and pay only $1,800 CAD per month in rent, which is $1,000 CAD less than the median rent in Vancouver).

[@dragontiger624]

@@Funkteon i understand the statement, but 1: not looking for ridicoulous animals both in their size and nature, and 2; i don't like moving, escpeccialy far away, so I'm not going to travel a third of the earth just to get taxed less (This is partially a joke so dont take it too seriously.)

[@dragontiger624]

​@@Funkteon moving to australia has it benefits but i dont like moving and being far from friends, but i can see why you like living there

[@Funkteon]

@@dragontiger624 Canadian wildlife is WAAAAY more dangerous than Australian wildlife... Australia has ZERO animals that can chase and eat you, ZERO... You have bears, wolves, moose, mountain lions etc etc etc. The only large animals in Australia that can eat you are either in the north of Australia in the warm ocean waters, the sharks, or in the warm saltwater tidal rivers in the north of Australia, the crocodiles... Every other animal of ours looks like a fkn plush toy and acts as such... Put it this way, no Aussie hiker EVER has to keep their food in a fkn airtight container to avoid attracting something that will chase and eat you, period....

[@n0vellette]

"That kind of sucks" As someone who is alive today because of universal healthcare in Canada, it breaks my heart to hear when people say things like that 😢 Without the contributions from myself, my family, and every taxpaying Canadian, I and countless others wouldn't be able to live the life we do, nor would you have the security knowing you can visit a doctor whenever you need one! So for keeping me alive with my free medical devices and medication, thank you fellow Canadian taxpayers ❤❤

[@naiahpineapple]

Yeah but everyone is forced to pay taxes, if these was an option to not pay taxes no one would pay them, so don’t thank people for paying they have to

[@zerere_]

​@@naiahpineapple the richest do not pay)

[@naiahpineapple]

@@zerere_ yes they do pay, but just lower because they make so much money

[@zerere_]

@@naiahpineapple tax evasion, each one of them does it. In which regressive, fifth world country do the rich legally pay less? That's an absurdly funny concept

[@leoparathesweekgeeky7244]

​@@zerere_ That would be the United States of America, sir. 😅

[@mackenziereasor9134]

Is my social studies teacher controlling my recomended?

[@fesica398]

Jemand deutsches hier, der/die auch geschockt ist, dass die nicht wissen was Brutto und Netto Lohn ist? 😅 das weiß bei uns schon jeder in der 6ten klasse

[@tillie_brn]

I'm French but I thought the same

[@dbzbourgheim]

(French here, but same idea of Brutto/Netto Lohn) Yeah, depending on the country, this isn't going to be explained that well. In Europe, we have a whole history of fights and riots to get to this point, which means that we're eventually gonna hear about it in our history books. Doesn't quite work the same on the other side of the Atlantic, I would assume ^^

[@sanityssakearts]

This is a skit, most anyone who has worked or heard their parents talk about working will know about taxes. Some people do manage to go a weirdly long time without learning basic things like taxes, or that you do have to pay off credit cards and loans, which is information that should be taught in school, but if someone doesn't want to learn a thing then they will not learn that thing until it becomes a thing that they urgently need to learn.

[@fesica398]

@dbzbourgheim yeah I also think because we in the Europe have quite high taxes ( sometimes up to 60%) compared to other countries in the world. Would be quite hard to not notice half your salary gone 😅

[@fesica398]

@sanityssakearts1416 for me it's hard to imagine that these simple things are not thought at school. Maybe I'm too ignorant... Also maybe in other countries people don't talk about this kind of stuff with their parents, because money is kind of a private topic ? Idk

[@adelanovakova783]

In Czech Republic, we actually have names for this difference! The pay without deductions is called the “rough” wage and what you take home is the “clean” wage. And you can actually ask in interviews what your “clean” wage is gonna be!

[@mariapaz6379]

Same in Chile, we use the same concept but with the spanish word "bruto", literal translation of rough. For the final amount, we use "neto", which is a term used to describe the end result of a simple equation.

[@ChrisD23]

Actually in English this works the same way! The pay without deductions is called the "gross" income and what you take home is called the "net" income! :D

[@ChrisD23]

​@@mariapaz6379 Looks like the same idea as "gross" and "net" income in English! :0

[@marias5230]

This is the case in every country where people pay taxes

[@leenabonq7550]

We don't learn this at school

[@benjesta]

You do it's just more complicated at school

[@canesaw]

You sure that you didn't miss that day

[@alisonfraser8231]

Why is it the school’s responsibility to reach everything? They are there to educate you not to raise you. Did your parents have jobs? They should have explained this to you.

[@canesaw]

@@alisonfraser8231 Because school was literally made to inform you.

[@sjs9698]

@@canesaw close but not exactly. schools (for commoners, schools for nobles are different) were originally concieved as ways to make people more employable: they started out only teaching literacy & numeracy (which were increasingly in demand as roles like accountants, clerks & secretaries became more common), and sometimes theology/history/classics depending on the prevailing assumptions of the area & era. they often taught obedience authority & adherence to a schedule, not always subtly, too. i'd agree that's what schools *should* be for, but the concept was introduced when people in power were more open about how little it mattered to them if working class people had quality of life.

[@tanyasutherland5814]

Also, you can pull out up to $25,000 from your RRSPs (if you worked enough to accumulate that much) to use towards your first home down payment. Edit: Not every employer provides RRSPs, I encourage you to find one that does!! Canada only*

[@ocrap6992]

What does CPP stand for?

[@elizabethkendrick3209]

I think you’re thinking of a registered retirement savings plan, or RRSP. You cannot withdraw money from CPP for any reason other than retirement. CPP is not a set amount of money that belongs to you unfortunately.

[@tanyasutherland5814]

@@elizabethkendrick3209 I believe you’re correct! Sorry, it’s my partner who’s going through the process. It seems as though depending on the employer you’ll receive RRSPs. After only working 3 years with this employer (he doesn’t make a stupid amount of $) he was able to accumulate 18k in his account, which will go all towards a house when we can find one. So I guess I withdrawl, not everyone gets RRSPs but I encourage to find an employer that does provide that! It accumulates fast!

[@cookingkurry4384]

Also since it seems there was not enough time, the EI stand for Employee insurance, its used when you get laid off, injured/very sick, or going on Maternal/Paternal leave. It's very nice to have a net but the paperwork at the start is very daunting.

[@randomtwitchuser455]

Feels good when you like the vid and the counter goes from 18k to 19k😌

[@helichaudhary1837]

Ayyyy im second ❤❤❤❤❤ love your videos they help A LOT😊😊

[@StreetCents]

Thank you! 🥰

[@megaazdog]

This was the most convoluted way to say taxes

[@KayleighWenham-Ross]

How do you get a 48k job and not know what taxes are

[@sanityssakearts]

It's just a skit. That's how she chose to present the information in an engaging way.

[@emilyau8023]

Financial illiteracy is high, so it's a common issue.

[@meyes1098]

Or just use the terms used globally: Gross salary: before tax Net salary: after tax, the one you get in your hand. You should always negotiate your NET salary, not the gross one.

[@wessager8659]

In this age, 'Personal Financial Math' 'is the most important class that a young person can take.

[@ellevictor474]

It feels nice that my first job actually explained this to me in the HR welcome presentation... so did my mom

[@albedussy6919]

It’s not very fun in the now but the deductions have always felt important to me, I like knowing that maybe one day I’ll be taken care of thanks to my efforts now! And I’m all for building new community things like listed in the video

[@missbeaussie]

In Australia the salary doesn't usual include PIT. That's on top.

[@Funkteon]

We don't pay PIT (another word for state tax), instead, us Australians pay GST on all purchases and that money goes to the state government in the state it was collected/paid. This is why Tasmania and the Northern Territory completely rely on the federal government for everything as they don't collect enough money in property/council rates and GST to pay for the things they need.

[@imbara33]

In France, we barely look at the full salary, it does not matter compared to what you gain once deductions passed

[@nick29766]

California takes about 40% of mine it's rough

[@megjane7]

Blue states for you

[@verlocitybrand2290]

@@megjane7 this is how i know you've never leaved your state

[@megjane7]

@Verlocity Brand lol. I grew up in Texas and now have lived 6 years in Colorado. Trust me there's a big difference in dumb taxes and cost of living between there and here

[@makaylaserniotti1474]

@@megjane7 California doesn’t take 40% of your salary unless your income goes into a certain tax bracket, and only then the dollars contributed in that tax bracket at 40% are only after it meets the bracket. If Nick is making enough money to make it to the 40% tax bracket, he’s well off and doing just fine. Common sense, basic research. It’s not hard.

[@Theta111]

And yet no free hospitals😅

[@belitakuma7600]

What job do u do I need the money 😂❤

[@JAS0N_M00RE]

Probably either working 60-70 hours a week which is very possible or she's getting $20-$30 a hour working 35-40 hours a week if so I would like to know what job pays that

[@analogstic1972]

​@@JAS0N_M00RE Probably either specializes in something niche or high demand enough for employers to be willing to pay a lot for her skills. I'm currently studying web development and I looked at some job listings, some places will pay $20+ per hour if you have a few years of experience

[@aarondoyle4717]

And you used to graduate from high school knowing basic things like this and how to balance a a checking account or do a household budget.

[@leewheeler2325]

This video showed me more about the working world than my entirety of 12 years of school.

[@StreetCents]

We got your back 😊

[@HarryCantReview-if9sl]

In the us, if you have a 90k job you will get 70k after taxes which is pretty bad considering they don’t fix roads, health care isn’t free and most parks besides the big tourists ones are dirty.

[@hyperswain]

This is the kind of stuff that should be taught in school

[@dogstaraycliffe]

As the saying goes Death & Taxes 😂

[@moniquethong798]

This. This is the kind of things that kids should be learning in school.

[@christophervokey6611]

Taught us more then school ever had lol

[@alexandrajallu8493]

In France it’s Salaire Brut (without the deductions) and salaire net (with the deductions). We pay for our retirement, taxes (impôts), sécurité sociale( it’s like national health insurance), and other things that evolves in the same sphere.

[@myleskgallagher]

She said 30% and I was like wtf, then I realized its Canada 😆

[@blowmanuts9584]

When we retire... Love that optimism but fat fuckin chance

[@dperreno]

Yep. First time getting paid "above board" you learn of these things...

[@kkav4586]

Why did this make so much sense and why did nobody in school say it like this

[@estherlouise924]

That seems like such a scam though, they say you'll get this amount, but you actually get way less, I recently got my first pay check, (I'm 16) and I was just like, "THEY DO THAT FOR FRICKIN' TEENAGERS TOO??" I was really p.o.ed

[@WineRedEchos]

I fully expected some sort of joke here. ngl. still interesting and informative.

[@raisabajrami3428]

The best on my country is they tell u direct a paycheck home

[@Ofiotaurus]

The alternative is to go live more south where you get all the money but have to do the taxes and there is no pension.

[@BBZ9000]

In the states we can rest easy knowing the pension we pay will be gone by the time we retire. Gotta love corporate greed. It’s happening as we speak with the federally backed social security.

[@alphariusomegon404]

May sound bad at first, but totally worth it. Same deal in most European countries, great education system and no big Bills in Hospital or doctor Praxis, just minimalist fees around 10€ for medicine on the drugshop at the end.

[@makaylaserniotti1474]

It sucks, but it’ll pay off with the social services you enjoy as a Canadian. Us Americans aren’t so lucky on that front, it’s hit or miss depending on where you live.

[@Funkteon]

Orrrr, you could just live in Australia and earn more money, pay less tax, not have to live next to the Yanks, deal with WAAAAAYYY less homeless on the streets, STILL have universal free healthcare and have rent that isn't 60% of your take-home pay if you want to live in the city (for context, I live one block from Brighton Beach in Melbourne, which has been voted a dozen times the world's most livable city) in a gorgeous 1930's English Tudor home and pay only $1,800 CAD per month in rent, which is $1,000 CAD less than the median rent in Vancouver).

[@rifqitaqiuddin]

At least you dont have to do your taxes yourself. Thats a blessing.

[@Calliopesigil]

I can’t stop giggling at the thought that there’s an official legal thing called the see peepee (cpp)

[@TheCornucopiaProject-bd5jk]

That’s why there is gross pay, before deductions and taxes and there is net pay, after deductions and taxes. Net pay is what you get paid out. However when you file your taxes at the end of the year, you might be able to lower your taxable income and get money back or you might find you under paid and owe money. Your salary is always before deductions and taxes because those are based on individual circumstances which vary.

[@TheCornucopiaProject-bd5jk]

The real question is, shy don’t people know this basic information

[@alexg.7913]

My pay was listed as net on the contract, which is awesome because I don't have to worry about how much my actual take home pay would be, they work to determine the gross based on the net so that people know what they're getting paid when they sign up

[@ders972]

If you don't know this before your first paycheck, your parents have failed

[@hashybrowni]

as a minor in the us my paychecks never made any sense as i was making way less than i though i would be, none of the numbers on the check minus what i was working for adding up to what i got..

[@gendoll5006]

Not to mention short term disability, long term disability, medical, dental, etc (in the US at least).

[@RavarsenBlogspot]

I've never paid taxes in my life because my country don't offers any benefit like these in return.

[@slayerr_3x]

Being an adult would be so complicated omg

[@Sanity016]

I wish the FIT was less. it was almost 12% of my gross income on my last paycheck. That being said I do take advantage of government services and I'm glad they exist but it was a pretty large sum of money that I didn't get to see in my bank account.

[@x.xlunax.x]

Ooo I like your plants :)

[@RedQuill13]

Where I live its only 10% for taxes and social security is optional.

[@mdheartsuju]

In Australia our retirement fund is not part of our advertised salary. The employer has to pay at least 10.5% of what they pay us. Many companies pay more but that is the minimum right now

[@waroftheworlds2008]

A pay stub should clearly label out what's going on. Minus the fact that they use acronyms for everything.

[@lani0]

They dont have the deductions, thats why they are called deductions 😂

[@brandonnao]

Me as an American realizing that I've been losing my paycheck to the Canadian government :/

[@emilyau8023]

Dang Canada still has pensions...lucky

[@Thebatcavepetfriendlybakery]

I'm happy to pay the money to the govt, but why tell me im making x amount when im not actually taking that amount home? Makes me feel a bit lied to or scammed. But money is money 🤷‍♀️ cant complain too much, i just wish these things were more up front

[@JW-452]

god i wish ths stuff was taught in ALL schools, how is it that when we become adults these things have not been taught to us.

[@sarahardemalm]

damn in my country it's never taken away from your earnings and the company/manager handles the taxes on your salary

[@natalieeubank4533]

Pay check…two separate words

[@StreetCents]

We use paycheque often in Canada 🇨🇦

[@imavivix]

In Germany we say Bruto and Netto

[@SignedWithBlood]

Same in Belgium.

[@TheRatt96]

I have more taken out of my pay because my area is on the edge between two counties.

[@aaronjjacques]

Cpp is you SHOULD get a pay check. It going to be bankrupt when you retire

[@Minecraftmike5089]

I'd kill a statistically significant number of people to cap my deductions at 30 percent.

[@AlexW-]

Move to Switzerland. 17% deduction (already including healthcare)

[@LeoAndela]

Omegachad BRUTTONETTO knocks at the door

[@Chloe_2110]

Yep those are some statutory deductions for you

[@justme-dg8uf]

I thought it is also brutto and netto in English 😅

[@nataliewatt5205]

“Gross” and “net” would be the finance terms, but I hear people talk about “take home” pay more often than “net” pay.

[@Cassiopaeia]

This is why this topic should be a mandatory subject in schools. I hate how we are all wondering about this and that. I AM STUDYING BUSINESS AND I'M STILL CONFUSED ABOUT TAXES 😂😂 More so for people who never learned about income taxes and other stuff regarding their income.

[@dinahdermul5567]

Around 30%??? Here in Belgium you can deduct around half your paycheck

[@gai_ninja]

I get a second job paid in Cash 😂 or start business and deduct everything 😂

[@Arkturr]

Informative but i should be able to opt out of all of these

[@igorgk1573]

Lol how can you not know this??

[@StreetCents]

Everyone’s gotta learn it for a first time somewhere

[@hadawson72268]

Wait a minute : in the US roughly 30 percent of my income is deducted same as yours, but you guys have National Health & we don’t ?!? What gives US ?!?!

[@StreetCents]

🤔🤔

[@EnzoVinZ]

30% in taxes...ouch. I'm sure the government is doing a good job spending it, right? RIGHT?

[@niniimuka]

On the flip side, the money you get is tax paid, as in its taxes are alrwady paid, so you can spend it freely, and dont have to keep every receid, and calculate the tax at the end of each year

[@celinaelzer]

I like living in Germany 😂🥰

[@ppunion]

I live in Denmark. I had a job when I was 16. I made about 10 US$ an hour... And that was 20ish years ago. Eventually I was approached by my boss who gave me a BUNCH of money and just told me that a mistake had been made in my pay and this was what I was owed. From then on I made notably more an hour. And to this day I STILL don't know why. When I was 18 they let me go.

[@blackeyedsusan727]

How is this novel to anyone? Financial illiteracy is apparently an epidemic too! 🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

[@StreetCents]

Everyone learns this at different times

[@MalumLupum]

30 freaking percent 😮

[@kurno-silver]

CPP sound like see pp

[@linusgke]

Are there really people out there, in a job, not knowing what “taxes” are? 😅 I’m from Germany and “Netto/Brutto-Gehalt” is a concept even most school kids understand.

[@biggie1822]

Apparently there's a bill to get rid of income tax currently in the United States if anyone's interested in looking that up.

[@WeiYinChan]

Right this is why the US is a dystopian hellscape lol. I pay a lot of income tax and it sucks but that’s how we get functioning roads and public hospitals and schools

[@sidthompson9538]

Yep because privatization of everything keeps the rich rich and the poor poor. With public education, healthcare, government funded upkeep of public areas, etc. poor people can still live like human beings. Imagine a world where you can’t afford healthcare, can’t afford to pay for private school, and your neighbourhood is completely unlivable by any sane person‘s standards all because you don’t make enough to afford those things. People who can’t get an education and can’t get any kind of healthcare simply die or never escape poverty. Their kids never escape poverty either. Then you realize the USA is heading in exactly that direction except anyone can also get a gun meaning there are school shootings extremely often. Everyone else who isn’t a literal third world country thinks they’re fucked. I’d rather have to pay even 60% of my salary and live in Canada than live in the USA.

[@noname-gh1vr]

​@@WeiYinChan but our income taxes aren't being used for any of that. everything just keeps getting worse, and no one wants to pay (technically illegal) taxes to pay the fat cat elites paychecks.

[@alitasdepollo2752]

So take home a few extra bucks each month in exchange for needing to shell out 4+ years worth of salary for a doctor’s visit? Hard pass.

[@pikapoo6148]

​@@WeiYinChan shiet maybe your city but where I live our roads are fucked up and we just received a 15m donation too

[@greatninja2590]

At least you dont have to do your own tax

[@choogheem]

I'm so confused - how did you think pay works?

[@Funkteon]

Orrrr, you could just live in Australia and earn more money, pay less tax, not have to live next to the Yanks, deal with WAAAAAYYY less homeless on the streets, and have rent that isn't 60% of your take-home pay if you want to live in the city (for context, I live one block from Brighton Beach in Melbourne, which has been voted a dozen times the world's most livable city) in a gorgeous 1930's English Tudor home and pay only $1,800 CAD per month in rent, which is $1,000 CAD less than the median rent in Vancouver).

[@alisonfraser8231]

If you can get a job worth 48, you really should already have this information.

[@kendac5493]

And with all we pay we still get nothing

[@dantemalus6533]

only 30%?!?! Okay.... i have to move to canada! in germany you pay as a single with no disability 51%. you pay less if you are married and/or have kids.

[@islandsunset]

Do you pay tax monthly? I thought you can pay it yearly and apply for Income Tax returns during a specified time.

[@sleepygirl96]

*laughing in state mandatory public insurance*

[@ninjakeks9326]

For me it's weird enough that you get paid every week instead of once a month

[@DarkVideogamer]

Some jobs are weekly, some every two weeks and some monthly. It all depends on the job.

[@senoreljoynes6442]

Canada provides universal pensions? How do I get a job in Canada?

[@mrnm6482]

Brutto and netto salary

[@emilwandel]

Weekly payments are you primary school children?

[@VickyTheVikram]

✨Tax✨

[@pandoraforbes4064]

Wait so in Canada would these deductions act like in America the tax system? Do Canadians still have to pay taxes if these deductions are made

[@DarkVideogamer]

Technically, your income taxes are paid for on every paycheck. So when tax season comes around, filing taxes is to make sure that the money you or your job has been reporting adds up to what the government calculated to be your total taxes for a year. If the math adds up and you don't owe the government money (aka you're not behind on taxes), then you can either be flat and get nothing. Or actually get some money back.

[@Morpheus-em1el]

Isn't that taught in school? I life in Germany and here it is normally taught in school around the age of 15 or at least while learning your job.