In any organization, payroll represents the sum of entire compensation records of employees. This includes fixed wages, variables, bonus, and deductions such as Provident Fund (PF), Profession Tax (PT) and Income Tax (IT).
In financial accounting, payroll denotes the amount paid to employees for services they provided for a defined period. Normally, wage period or payroll cycle would be one month. However, for contract labor and daily wages workers, there could be appropriate periods as defined by the organization based on nature of business.
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