What is Payroll?
Payrolls is an agreed-upon amount of money that will be paid to an employee by an employer. It also describes the overall employee pay in financial records, as well as the process of paying employees with all the related taxes included. A company distributes it to employees through checks or direct deposits.
Why is Payrolls Important?
Every employee looks forward to payday. Everyone expects their money handed or deposited to them on the day it is promised to. To achieve this, the company has to divide out wages to the employees. Many companies choose to use payroll processing services to pay their employees.
The processing service will collect and use paid and unpaid time off, tax withholdings, miscellaneous withholdings, and more. This will determine the amount of money to be paid directly to an employee. Many of these services will also assist in the process of sending the money to the employees.
Payrolls in Startup Wars
In Startup Wars, is automatically processed and paid out to employees. Every employee has an employment rate that will determine how much they are paid. This is very similar to how real startups operate. However, since startups have limited resources they tend to do payroll in-house.
The founder or a hired accountant will manually track hours and withholdings, calculate them into payments, and then manually distribute the money. This process is very rigid since any errors made can cause complications due to the numerous tax laws in place from the government.
About the author
Moe Ramirez
Startup Wars education contributor
Moe covers entrepreneurship education, applied business skills, and practical ways educators can help students learn by doing.