Glossary definition

What is payroll?

Payroll

Payroll typically refers to the compensation awarded to employees for their work at a company. This includes salaries, wages, benefits, and overtime. Recorded as an expense, payroll is often one of the largest expenses a company has.

Keeping an accurate record and ensuring payroll is operating smoothly is of utmost importance for most companies. For this reason, companies often outsource payroll, meaning they utilise a third-party payroll service to handle payroll matters. Other options for managing payroll are to handle it manually, in-house, or through the use of payroll software.

Depending on context, individuals often define payroll in different terms. A broader payroll definition includes the actual department in charge of employee remuneration and may refer simply to a company’s list of paid employees or the records of such compensation.

Subscribe to The Access Group newsletter

Effective 1 June 2021, Sage’s accountant and payroll solutions in Australia will be sold to The Access Group.  If you would like to continue to receive valuable content such as this to optimise your practice or business, please subscribe to The Access Group newsletter.

Subscribe