Payroll Definition and Related Articles – Patriot Software
Payroll Term Definition
The total amount of salaries, wages, and/or additional compensation owed to employees for a specific period of time (i.e., weekly, bi-weekly, semi-monthly, monthly).
The term “payroll” is used (as above) in reference to the total amount of funds an employer needs for each pay period. However, it is also used to refer 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). Overtime, sick pay, bonuses, etc., explain why totals often vary from one pay period to the next. For small businesses, payroll can be a major expense, and it is usually tax deductible.