Payroll processing is the administrative task of calculating and distributing employee salaries, wages, bonuses, and deductions, such as taxes, benefits, and retirement contributions. It involves tracking employee work hours, ensuring compliance with labor laws, calculating gross pay, and applying deductions for taxes, insurance, retirement plans, and other withholdings. Once the calculations are complete, payroll processing includes issuing payments to employees (either via check, direct deposit, or another method) and submitting the necessary payroll tax payments to government authorities. Payroll processing is a critical function for organizations to ensure accurate compensation and compliance with tax and labor regulations.