What is payroll?
Payroll is the process of paying people accurately and on time. It starts with working out what someone has earned, then applying the right deductions such as tax and National Insurance and making the payment.
Payroll also involves keeping records and reporting the right information to the relevant authorities, which helps support compliance. For hourly-paid roles, payroll usually relies on time and attendance details, so hours worked are captured correctly.
Some organisations run payroll in-house, while others use payroll software or a payroll provider.
Things to know
- Payroll covers both paying people and keeping the records that support each payment
- Payroll deductions and reporting requirements vary by country
- Accurate time and attendance data is important for hourly pay
- Payroll can be managed in-house, through software or with an outsourced provider
- When payroll is done well, it builds trust and reduces avoidable errors
FAQs
How often is payroll run?
It depends on the organisation. Common pay schedules include weekly, fortnightly or monthly.
What information is included in payroll?
Payroll records usually show earnings, deductions and the final amount paid.
What’s the difference between payroll and a payslip?
Payroll is the overall process. A payslip shows the details for one pay period.
Can payroll be outsourced?
Yes. Some employers use a payroll provider or payroll software to manage payroll processing.
