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Accounting & Tax vocabulary · Payroll & Employee Costs

Payroll

Meaning in accounting & tax, with examples

/ˈpeɪroʊl/nounCore term

In accounting & tax, payroll means: The process of calculating and paying employees' wages, including tax and social security deductions, and also the total amount a company pays its staff.

In Turkish: bordro, ücret bordrosu, personel ödemeleri

How it is used

Companies run payroll every month, either in-house or through a provider. 'On the payroll' means employed by the company. Payroll costs are often the largest expense of service firms.

Example sentences

  1. We run payroll on the 25th, so overtime must be approved by the 20th.

  2. The company has 140 people on the payroll.

Common collocations

  • run payroll
  • payroll department
  • payroll costs
  • on the payroll
  • payroll tax
  • gross payAn employee's total earnings for a period before income tax, social security and other deductions are taken off.
  • net payThe amount an employee actually receives after income tax, social security contributions and other deductions have been subtracted from gross pay.
  • payslipA document given to an employee each pay period showing gross pay, each deduction such as tax and social security, and the final net pay.
  • social security contributionsCompulsory payments by employers and employees, calculated on wages, that fund pensions, health care and other social benefits.
  • withholding taxTax that the payer deducts from a payment, such as a salary, rent, dividend or freelance fee, and pays to the tax authority on behalf of the person being paid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payroll & Employee Costs

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This page explains English vocabulary for learners. It is not financial advice.