Payroll

Also called: running payroll, payroll taxes, payroll provider, paycheck, paychecks, tax withholding

Paying employees on a schedule, and the work that goes with it: withholding income and payroll taxes from each paycheck, paying the employer's share and filing the required tax forms. Many small companies use a payroll provider instead of doing it by hand. Contractors are paid without withholding.

For example: A startup makes its first hire. Before the first payday it signs up with a payroll provider, which withholds taxes from each paycheck and files the quarterly forms.

Connects to 4

Contractor vs employee Concept
EIN Concept
Equity vs cash compensation Concept
Oklahoma Employment Security Commission Government

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.