What Is Gross Payroll – How Is It Calculated?

[Tremblay]

I keep coming across the term gross payroll but I'm not entirely sure what it means or how it differs from net payroll. Is it the total amount before or after deductions? Can someone explain what gross payroll is in simple terms?

 

[darrensammy]

Gross payroll is the total amount which a company pays to its employees without any deductions such as taxes, benefits or insurance. It contains the salaries, wages, bonuses and overtime. It can be calculated by simply summing up all the earnings of the employees during a given pay period. Gross payroll provides a clear picture of the total compensation costs.