Salary vs. Payroll — What's the Difference?

Regular compensation received by an individual, typically monthly or annually.

Record or statement detailing salaries and any associated deductions.

Monetary payment excluding bonuses, commissions, or overtime.

The list of employees receiving compensation within a company.

A predetermined amount paid to an employee for their services.

In treasury management, a payroll is the list of employees of some company that is entitled to receive payments as well as other work benefits and the amounts that each should receive. Along with the amounts that each employee should receive for time worked or tasks performed, payroll can also refer to a company's records of payments that were previously made to employees, including salaries and wages, bonuses, and withheld taxes, or the company's department that deals with compensation.

Agreed upon compensation for a specific position or job role.

A system or process to manage and disburse employee payments.

Fixed payment made to a professional as opposed to hourly wages.

A list of a company's employees and the amount of money they are to be paid

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.

A list of employees receiving wages or salaries, with the amounts due to each.

A fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker

The total sum of money to be paid out to employees at a given time.

Pay a salary to

A list of employees who receive salary or wages, together with the amounts due to each.

Fixed compensation for services, paid to a person on a regular basis.

The total sum of money paid to employees.

A fixed amount of money paid to a worker, usually calculated on a monthly or annual basis, not hourly, as wages. Implies a degree of professionalism and/or autonomy.

(accounting) The calculation of salaries and wages and the deduction of taxes etc.; the department in a company responsible for this.

To pay on the basis of a period of a week or longer, especially to convert from another form of compensation.

(euphemistic) Bribes paid to people.

(obsolete) Saline.

(transitive) To place on a payroll.

Saline

A list of employees and their salaries;

The recompense or consideration paid, or stipulated to be paid, to a person at regular intervals for services; fixed wages, as by the year, quarter, or month; stipend; hire.

The total amount of money paid in wages;

To pay, or agree to pay, a salary to; to attach salary to; as, to salary a clerk; to salary a position.

The department that determines the amounts of wage or salary due to each employee

Something that remunerates;

Total of all financial records for salaries, wages, bonuses, and deductions.

Department or team responsible for processing employee payments.

Typically, a dedicated payroll department or an outsourced payroll service manages payroll.

Payroll is the process of managing and disbursing the salaries, wages, and other compensations to employees, while salary is a component of payroll.

No, a salary is a fixed amount, while an hourly wage varies based on hours worked.

A salary is a fixed amount of money paid to an employee, typically on a monthly or annual basis.

While a bonus is a form of compensation, it is separate from a base salary and is often based on performance or company profits.

Popular payroll software includes QuickBooks, ADP, and Paychex.

Accurate payroll ensures employees are paid correctly, helps avoid legal issues, and maintains company reputation.

Payroll includes salaries, wages, bonuses, taxes, and other deductions.

While benefits might be offered as part of an employment package, they are separate from the base salary.

Yes, a salary can change due to promotions, negotiations, or annual reviews.

Overtime pay is separate and is usually paid to hourly employees who work beyond their regular hours.

Human error, software glitches, or changes in tax rates can cause payroll discrepancies.

No, a commission is based on sales or performance, while a salary is a fixed amount.

Payroll taxes are often paid either monthly, quarterly, or annually, depending on the requirements.

Not necessarily. Small businesses might handle payroll themselves or outsource, while larger companies often have a dedicated department.