You may have heard your accountant talk about "doing payroll," or "payroll taxes." Payroll is an overall term used for several types of operations related to paying employees and paying payroll-related taxes due to federal and provincial agencies.
What is Payroll?
Payroll is an action that is performed by companies with employees. It's the process the company goes through to pay the employees.
The term payroll has several different parts:
The calculation and distribution of paycheques (physical or electronic) to employees each payday, as in "I finished doing payroll yesterday."
The financial records for employee wages and salaries, withholding, deductions, bonuses, pay for time not worked (holidays, vacations, sick time, etc.) and other items on employee paycheques.
It can also mean the record of total earnings of all employees for a company in a fiscal year.