What Does Payroll Mean?
Payroll is defined as the total of all compensation an employer must pay to their employees for a set period or on a specified date. It can also be defined as the process of providing compensation to employees for the work they perform on behalf of their organizations.
Payroll is one of the most important aspects of business. It affects employee morale and reflects a business’s financial stability and reputation. Because employees rely on their paychecks, errors or untimely payment can create a lack of trust. But when paychecks are accurate and delivered in a timely manner, employees are more engaged and motivated.
Payroll department is defined as the departments that manage payroll in an organization. Payroll is typically managed by the Human Resources and Accounting departments. Human Resources collects and enters employees’ data for payroll purposes, and Accounting completes the calculations for taxes, wages and benefits.
Learn more about payroll processing here.