Payroll processing refers to the task of managing the payment of wages by a company to its employees. The steps involved in payroll processing typically include gathering employee time information for a selected time period, managing benefits & deductions.
A payroll is a company's list of its employees, but the term is commonly used to refer to- The total amount of money that a company pays to its employees, a company's records of its employees' salaries and wages, bonuses, and withheld taxes, and the company's department that calculates and pays these. Payroll in the sense of "money paid to employees" plays a major role in a company for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and because they are subject to laws and regulations (e.g. in the US, payroll is subject to federal, state, and local regulations). From a human resources viewpoint, the payroll department is critical.