What is payroll?

09 Jun 2021

The term 'Payroll' means making a list of employees within a company and writing down the amount paid to them. But nowadays it is commonly used to refer to employee salaries which record the amount an employee has earned over the time. ePayslip UK

Payroll is required in every type of business in which people are employed to work because of the following reasons: 

  • To calculate the amount to be paid to your employees. 
  • To calculate the amount of tax and NIC (National Insurance Contributions) deducted from the gross salary of the employee. 
  • To report the employee salary details to HMRC (HM Revenue and Customs). 
  • And most importantly to pay their employees.