Payroll
Payroll Processing Steps and Workflow FAQ
This FAQ covers 18 of the most common questions about end-to-end payroll processing, organized by stage: fundamentals, cycle steps, time capture inputs, compliance requirements, system selection, and common mistakes. Whether you are building your first payroll workflow or eliminating manual cleanup from an existing one, these answers give HR, payroll and operations teams a repeatable reference for running accurate, audit-defensible pay runs.
19 questions
- What is payroll in simple terms?
- Payroll is the process of calculating and distributing compensation to employees for hours worked, including wages, tax withholdings, benefits deductions and employer contributions. It is governed by the Fair Labor Standards Act (FLSA) at the federal level and by state wage-and-hour laws. Payroll is not just issuing paychecks; it includes the recordkeeping, tax filing and compliance obligations that come with every payment. For a deeper look at terminology, see payroll glossary.
- What does payroll include beyond employee paychecks?
- Payroll includes gross wages, federal and state tax withholdings, Social Security and Medicare contributions (both employee and employer portions), benefits deductions (health insurance, retirement), garnishments, employer unemployment taxes, workers' compensation and recordkeeping. Many teams underestimate the post-payment obligations: filing quarterly returns (IRS Form 941), issuing W-2s, remitting state taxes and maintaining records that satisfy federal and state retention requirements.