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In any organisation, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons.

From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the US payroll is subject to federal, state and local regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee m. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct with holdings and deductions, and to ensure the with holdings and deductions are remitted in a timely manner. This includes salary payments, tax with holdings, and deductions from a paycheck.

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