06/03/2026
Running payroll for the first time comes with a lot of new terminology and understanding the basics can help you avoid mistakes early on.
Here are four important payroll terms every business owner should know:
• Gross Pay: the full amount an employee earns before deductions
• Net Pay: what the employee actually receives after deductions
• Withholdings: taxes deducted for federal and state income tax, Social Security and Medicare
• Employer Taxes: taxes paid separately by the employer in addition to wages
Knowing these terms makes payroll reports easier to understand and helps you spot potential issues before they become bigger problems.
Setting up payroll for the first time in Connecticut? ASP Bookkeeping can walk you through the process step by step.
Book your free consultation today at aspbookkeepingservice.com.