Payroll refers to the process by which a company compensates its employees for their work. It includes:

  • Tracking hours worked and calculating wages.
  • Distributing payments to employees, either through direct deposit or checks.
  • Managing withholdings for taxes and other deductions.

Payroll is also the term used for the list of employees who are paid by the company, as well as the total amount of money paid to them. It’s a significant part of a company’s financial operations and is usually managed by the accounting or human resources department.