Small Business Glossary and Definitions

Payroll is a term that refers to the salaries that a company pays it’s employees and the record of withheld taxes, salaries and bonuses. Payroll can also mean the department that handles making sure the employees get paid. Payroll is important for company accounting purposes, and it’s important as the primary means of compensating employees. Employees can be very upset when payroll mistakes are made, which means that the payroll department should be accurate and able to address potential employee conflicts.