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 utilize 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.

Need help with your numbers?

Accounting software can save you time and help you grow your business.

Find out more

Our payroll products have the highest customer retention rate in the industry

Find out more