What "payroll" means in finance

Payroll is the process of calculating and managing the compensation and benefits paid to employees of a company. This includes calculating the wages, salaries, and other forms of compensation owed to employees, as well as taxes, deductions, and other withholdings that must be taken out of employee pay. The payroll function is responsible for ensuring that employees are paid accurately and on time, and that all applicable taxes and other legal requirements are met. It is a critical part of any organization's financial operations, as it impacts both the bottom line and the satisfaction of employees.