Question

Explain the meaning of payroll.

Answer 1

Payroll refers to the process of calculating and distributing salaries or wages to employees of an organisation. It includes maintaining records of employee earnings, deductions (like taxes, provident fund, and insurance), bonuses, and net pay. Payroll also ensures compliance with labour laws and statutory requirements. In simple terms, payroll is the complete system that manages how and when employees are paid, and it is an essential part of an organisation’s human resource and finance functions.