Glossary definition

What is 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 use 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.

Sage 300 People

Secure, compliant, and familiar, Sage 300 People has everything you need to drive HR and payroll in your large business.

Find out more