What is Payroll ?
Payroll (Definition)
Payroll is a company’s way of paying employees, allowing a business to keep track of payments and taxes throughout the year. The term “payroll” can be used for the total number of employees employed by a company, or it can be used to refer to the total amount of money spent on those employees. Keeping track of payroll is essential in any organisation that has employees, ensuring they are paid on schedule.
The payroll allows you to:
- Calculate how much employees should be paid
- Calculate benefits, such as sick leave
- Calculate and deduct taxes
- Report employees’ pay to tax associations
The payroll allows businesses to keep track of employees and payments, and includes employees' personal information (including their name, address, national insurance or tax file number); wages, salaries, and total remuneration (gross and net figures); commissions and bonuses; depreciation and taxation.
