Dear Evansircar, An income of an employee is divided into two types, including a gross income and a net income. The gross income is what you earn monthly before taxes and deductions. The net income is a total pay which you receive and put in your pocket. For example: You earn $5,000 per month. You have to pay $1,000 for taxes, $500 for medical insurance, $500 for dental services. So, your gross income is $5,000, and your net income is $3,000. Hope this helps.