Accounting
Payroll
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Payroll is the system a company uses to pay its employees. It involves calculating gross wages, withholding taxes, deducting benefits (health insurance, retirement contributions), and issuing the final net pay.
For example, if an employee earns $5,000/month gross, after deducting $750 in taxes and $250 in benefits their net take-home pay is $4,000.
Payroll also includes filing tax reports, managing overtime, and ensuring compliance with labor laws. Getting payroll wrong can lead to unhappy employees, tax penalties, and legal trouble.