Payroll is the process of calculating and paying what you owe employees for a pay period, and keeping accurate records of it.
Gross pay is the total earned before deductions. Net pay is what the employee actually receives after withholding and deductions.
Pay frequency — weekly, bi-weekly, semi-monthly or monthly — determines how many pay periods you run each year (52, 26, 24 or 12).
Deductions can be pre-tax (such as some retirement contributions) or post-tax. Withholding depends on applicable federal and state rules, so always confirm your settings with a qualified professional.
General educational information, not legal or tax advice.
← All resources