A payroll processor is responsible for processing payroll for the employees of a company. Their job duties include validating employee work hours, calculating wages, and issuing checks to the employees. They may also verify the attendance of employees and follow up to ensure that employees are paid accurately. The payroll is an important department in a company. It handles all issues relating to payment of salaries and wages to employees for the services they have rendered over a given period of time. It also covers taxes and other necessary deductions taken from employees’ pay.
Payroll is the business process of paying employees. Running payroll consists of calculating employee earnings and factoring out federal and state payroll taxes. The term payroll can also refer to:
- A business’s financial records of employees.
- The distribution of employee paychecks.
- Annual records of employee wages.
Payroll can be a business’s greatest overhead expense. And the payroll process is complicated. But understanding each component of payroll may help you better understand your business finances. And it can help ensure you remain compliant with federal and state tax and labor laws.
