Put simply, payroll is the sum total of all the financial transactions and benefits that flows from the employers to employees like salaries, wages, net pay, deductions, bonuses. In other words, payroll is a list of permanent employees, contractual employees and labours for every payment cycle (monthly/weekly) that are to be paid by the company the amount written against their respective names after carefully considering the attendance before calculating the salaries, bonuses, wages, and deductions. Remember, payroll also includes the amount that the company invests in health insurance and other benefits on the employees as a part of the salary.
Talking about the process, payroll is the process of paying employees of the company after tracking the work hours and then giving them the salary via check or direct deposit.
Please note that the payroll is affected by government rules and laws and hence deduction amount can vary from company to company or state to state.
The task is quite a time consuming and prone to errors when done manually, hence, most of the companies have started using payroll software.