Payroll

Payroll is the total compensation a business has to pay its employees over a set period or on a given date. It is usually managed by the accounting or HR department, though at small businesses, the owner or an associate often runs it themselves. Many companies outsource payroll processing to specialized firms.

Payroll can also refer to the list of employees at a business and the amount owed to each of them. It is a major expense for most businesses, and it is almost always deductible, meaning the expense can be subtracted from gross income to lower the company’s taxable income.

Payroll amounts can differ from one pay period to the next because of overtime, sick pay, and other variables.