What is Payroll Processing?

Payroll processing is the systematic management of all tasks related to compensating employees, including the calculation, tracking, and distribution of wages and salaries. This process encompasses determining the correct amounts to withhold for taxes, benefits, and other deductions, as well as ensuring compliance with employment regulations. 

Payroll processing also involves generating reports and submitting required payments to regulatory bodies, such as HMRC. The complexity of payroll processing can vary based on factors such as employee status, pay rates, and organisational changes. It may be handled internally by dedicated personnel or outsourced to external providers or automated platforms to ensure accuracy and adherence to schedules.