What is payroll?

• A. The list of employees and the compensation they are to receive, and the department responsible for processing those payments.
• B. The department that handles hiring.
• C. The total annual payroll budget.
• D. The benefits administration plan.

Answer: (A)

Payroll is the function that records who is employed, how much they are paid, and handles delivering those payments. It includes the roster of employees and their compensation, along with the department responsible for calculating and issuing salaries, wages, and any withholdings. This distinguishes payroll from hiring, which is HR/recruitment; from budgeting, which plans the total payroll amount; and from benefits administration, which manages health, retirement, and other perks. The description that covers both the list of employees with their pay and the processing of those payments best defines payroll.