Payroll Definition

Payroll is the process of paying employees. It is the total amount of salaries, wages, and/or additional compensation owed to employees for a specific period of time (e.g., weekly, biweekly, semimonthly, monthly).

Payroll Extended Definition

Payroll refers to the process of producing and distributing paychecks or stubs. You will also find the word payroll used to refer to the employee records an employer must maintain in order to track payroll expenses (e.g., taxes, deductions, wages).

For small businesses, payroll can be a major expense.

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Last Updated By

Rachel Blakely-Gray | Apr 28, 2023