Payroll is the process by which employers pay an employee for the work they have completed. It involves tracking hours worked, calculating wages, withholding taxes and other deductions, and issuing paychecks or direct deposits to employees. Payroll also includes recording employees' compensation expenses and liabilities.
It's important to note that payroll must comply with various laws and regulations, including wage and hour laws and tax laws. Failure to comply with these laws can result in penalties.
Payroll payment is processed by the accounting team.
As of October 2024, the company’s EOR processes regular payroll semi-monthly (cadence may vary by country), but invoices the company once a month. For cash flow planning, founders may need to be aware that current cash on hand (bank account balance) may not reflect latest payroll draw due to timing difference of the EOR invoice.