what is payroll

Payroll is the process of paying a companys employees, which includes tracking hours worked, calculating employees pay, and distributing payments via direct deposit or check. It is a list of employees of a company who are entitled to receive compensation as well as other work benefits, as well as the amounts that each should obtain. Payroll can also refer to a companys records of payments that were previously made to employees, including salaries and wages, bonuses, and withheld taxes, or the companys department that deals with compensation. The payroll process involves many moving parts, such as gathering employee hours worked, calculating taxes and other deductions, distributing wages, and reporting and remitting taxes and other deductions to the right parties. Payroll is a major expense for most businesses and is almost always deductible. Companies typically process payroll at regular intervals, which varies from company to company and may differ within the company for different types of employees. Payroll in the U.S. is subject to federal, state, and local regulations including employee exemptions, record-keeping, and tax requirements.