Payroll is the process by which a company calculates and distributes wages to its employees. This includes determining the amount of money each employee earns based on their hours worked, salary, and any applicable deductions such as taxes and benefits. Payroll ensures that employees are paid accurately and on time. In addition to calculating wages, payroll also involves maintaining records of employee earnings and deductions. This information is essential for compliance with government regulations and for preparing financial statements. Companies often use payroll software or services to streamline this process and reduce errors related to taxes, benefits, and employee records.