Total payroll is the sum of gross remuneration paid by an organization over a given period.
How Is Total Payroll Calculated?
Total payroll is calculated as follows:
Total gross remuneration + bonuses = total payroll
Calculating total payroll is useful for measuring the impact of the workforce on the profits of a company.
Budgeted total payroll, on the other hand, is calculated by adding employer contributions and vacation pay to gross remuneration and bonuses.
Budgeted total payroll also takes into account severance pay.
Why Analyze the Total Payroll of a Company?
Analyzing the total payroll in relation to the growth objectives of a company is important in order to improve organizational performance. Total payroll analysis also enables better decisions to be made in relation to the recruitment and compensation policies of a company.
