payroll

noun pay·roll \ ˈpā-ˌrōl \

Updated on: 17 Apr 2018

Definition of payroll

1 : a paymaster's or employer's list of those entitled to pay and of the amounts due to each

2 : the sum necessary for distribution to those on a payroll; also : the money to be distributed

See payroll defined for English-language learners

See payroll defined for kids

Examples of payroll in a Sentence

They cut him from their payroll.
He's the manager of a baseball team with a $50 million payroll.
Businesses are keeping their payrolls low by embracing new technologies.

Recent Examples of payroll from the Web

Earlier in his career, Ryan was an advocate for partially privatizing Social Security by allowing younger retirees to steer a portion of their payroll taxes into retirement accounts.

— chicagotribune.com, "Ryan's departure: leaving behind new tax code, wife happy he's quitting," 11 Apr. 2018
Half of the money for the system would come from existing state funds currently spent on healthcare, with the other half from new revenues such as a payroll tax, according to the analysis.

— phil willon, latimes.com, "How single-payer healthcare has divided Democrats in California's race for governor," 11 Apr. 2018
And the other — a complicated option to convert the state income tax to a payroll tax — may prove difficult to sell to businesses and employees.

— russ buettner and jan ransom, New York Times, "New York Crafts Loophole to Protect Property Tax Deductions. But the I.R.S. Could Close It.," 1 Apr. 2018
Immigrants and their children will provide the new workers who will support that swelling number of retirees through their payroll taxes.

— ronald brownstein, CNN, "Fact-checking Tucker Carlson on diversity in America," 27 Mar. 2018
The most spectacularly successful example took place in 1935, with FDR’s clever tying of the payroll tax to Social Security benefits.

— alan s. blinder, The New Republic, "An economist’s view of the American political process," 22 Mar. 2018
And after federal taxes—income taxes, payroll taxes, etc.?

— david wessel, Newsweek, "Does the Tax System Reduce Inequality?," 12 Apr. 2015
The Connecticut Democrat, who has championed the #MeToo movement on Capitol Hill, kept Baker on her payroll for three months after learning of the accusations against him, the Post reported.

— veronica stracqualursi, CNN, "Dem congresswoman kept on top aide after learning of abuse allegations," 30 Mar. 2018
The Brewers, even after increasing their payroll by more than 50%, are competing at half that total.

— tom haudricourt, Milwaukee Journal Sentinel, "Haudricourt: Brewers sticking with their plan for starting pitching," 27 Mar. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'payroll.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of payroll

1740

Financial Definition of PAYROLL

payroll

noun

What It Is

Payroll is the total of the compensation a company pays to its employees. In the accounting world, it is also a term used for calculating and processing paychecks (as in, "doing payroll").

How It Works

On the income statement, payroll expenses are part of labor costs. They include employee salaries, employer payments for health insurance or similar benefits, payroll taxes paid by the employer, bonuses, commissions and similar expenses.

Doing payroll is a complicated process that involves ensuring that every employee is paid correctly, calculating the appropriate payroll taxes (which can vary with the employee's salary, whether he or she has hit the Social Security cap for the year, etc.), and correctly deducting miscellaneous items (such as court-ordered child support, gym memberships or 401(k) contributions).

Why It Matters

Payroll is a major expense for most companies and is the primary component of labor cost. Labor costs vary by industry, and comparing companies in different industries should be done with this in mind.

In the accounting world, doing payroll is a crucial but often thankless job. The calculations must always be accurate, the paychecks must be printed on time, new and departing employees must be added to or deleted from various processes, and the taxes must be remitted to the proper authorities on time and in the correct amount. As soon as the process ends, it begins again. Many companies outsource some of the work.

Source: Investing Answers

PAYROLL Defined for English Language Learners

payroll

noun

Definition of payroll for English Language Learners

: a list of the people who work for a company and the amount of money that the company has agreed to pay them
: the total amount of money that a company pays to all of its employees