# Payroll

Concept · [Talent and hiring](https://ecosystem.samcarlton.com/talent)

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

Paying [employees](https://ecosystem.samcarlton.com/contractor-vs-employee) on a schedule, and the work that goes with it: withholding [income](https://ecosystem.samcarlton.com/revenue) 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](https://ecosystem.samcarlton.com/contractor-vs-employee): A contractor is an outside person or firm you pay for a defined piece of work, and they decide how to do it.
- [EIN](https://ecosystem.samcarlton.com/ein): Employer Identification Number.
- [Equity vs cash compensation](https://ecosystem.samcarlton.com/equity-vs-cash): The two main ways a startup pays people.
- [Oklahoma Employment Security Commission](https://ecosystem.samcarlton.com/oesc): The Oklahoma state agency for unemployment insurance and employment services.

> 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.

Map view: https://ecosystem.samcarlton.com/payroll