WordGarden.iopayroll
B2Pronunciation
UK
- /pˈeɪrəʊl/
US
- /ˈpeɪˌroʊl/
Meanings
Noun
a company's system or records for paying employees
the employees of a company taken together
the total wages a company pays to its workers
Beyond the definition
Imagine a bustling bakery. They make delicious treats all day, but at the end of the week, they need to pay their bakers, decorators, and cashiers. That whole process—and the money paid to employees for their work—is payroll.
Payroll isn't just about handing out checks (though that can be part of it!). It's a whole system involving calculating wages, withholding taxes, and ensuring everyone gets paid accurately and on time. Businesses big and small all have payroll responsibilities. You might hear about "running payroll," which means processing those payments. Sometimes, companies outsource their payroll to specialists who handle everything for them.
Payroll refers to the total amount of money a company or organization pays to its employees as wages, salaries, bonuses, and other compensation for work performed over a specific period—usually weekly, bi-weekly, or monthly. It's much more than just writing checks; it's a complex process with legal and financial implications.
Historically, payroll was a manual task involving handwritten ledgers and painstaking calculations. Think of a factory owner in the early 20th century meticulously recording each worker's hours and wages! Today, most companies use sophisticated software to automate much of this work.
Payroll includes not only gross pay (the total amount earned) but also deductions for taxes (federal, state, and local), insurance contributions, retirement plans, and other benefits. A crucial part of payroll is ensuring compliance with labor laws and tax regulations; mistakes can lead to hefty penalties.
You might hear about "payroll taxes," which usually refers to taxes tied to employee pay. Some are withheld from employee paychecks, and some are paid directly by the employer. You could also talk about being "on the payroll," meaning someone is officially employed by a company. A freelancer, however, isn't on anyone's payroll; they invoice clients directly for their services.
So, whether you're an employee eagerly awaiting your paycheck or a business owner managing finances, payroll represents the vital link between work performed and compensation received—a cornerstone of any functioning economy.
Examples
- 1
Payday process
The company runs payroll every other Friday.
- Phraserun payroll
calculate and send employees' pay
- 2
Payroll department
If your address changes, tell payroll before the end of the month.
- 3
Employment status
The restaurant has about 40 people on the payroll.
- Phraseon the payroll
officially employed and paid by an organization
- 4
Business costs
Payroll costs went up after the store started opening on Sundays.
More examplesFewer examples
- 5
New hire
The new manager was added to the payroll in June.
- 6
Cash-flow problem
The startup nearly missed payroll during its first year.
- Phrasemiss payroll
fail to pay employees on time
- 7
Tax policy
The government lowered payroll taxes for small businesses.
See also
Similar
- payroll register
Contrast
- compensation
- accounts payable
Used with (collocations)
- payroll taxes
- payroll department
- process payroll
Explore
- human resources
- bookkeeping
Forms and spellings
2 forms open this card.
Main spelling
- payrollnoun
Forms
- payrollspluralnoun