Payroll refers to the process of paying employees for the work that they have performed. It involves calculating the amount of pay that each employee is entitled to, withholding the appropriate taxes and other deductions, and issuing payment to the employees. Payroll is an important function for a business because it ensures that employees are paid accurately and on time. It is also a compliance-heavy process, as companies are required to comply with various federal, state, and local laws and regulations regarding payroll, such as withholding taxes and providing pay stubs to employees.