What is Payroll?

Payroll refers to the company's list of employees and the total compensation provided to them for a fixed time period which includes fixed salary, bonuses and deductions. 

what-is-payroll


Payroll definition

Payroll refers to the company's list of employees and the total compensation provided to them for a fixed time period which includes fixed salary, bonuses and deductions. Payroll taxes affect the net income of a company.

The term carries a threefold meaning: it refers to the employees company pays, along with employee information. It can also refer to the amount company pay employees during each pay period or to the process of actually calculating and distributing wages and taxes.


Payroll file

Payroll file gives the accounting staff necessary information to pay an employee but limits access to confidential information.

Documents found in the payroll file include:

• Offer letter

• Pay authorization

• Employee benefits selection

• Salaried time accounting forms

• Hourly weekly time sheets

• Attendance records

• Expense reimbursement

• Pay advance request form

• Pay rate changes

• Paperwork related to bonus, profit sharing etc

• Company loan documents

• Payment Schedule


Do you use a modern recruitment software? If not, you're missing out. See how your life can be easier. Start your free 14-day TalentLyft trial.

Start my free trial