Payroll service refers to the process of managing an organization's employee compensation, including salaries, wages, bonuses, and deductions. It involves calculating the amount of money an employee is owed based on their work hours, overtime, and other factors such as taxes, social security contributions, and other statutory deductions.

Here are the key components of payroll service:

1. Employee information: Payroll service starts with collecting employee information such as name, address, social security number, salary or wage details, and bank account information.
2. Time and attendance tracking: Payroll service requires accurate tracking of employee work hours, including overtime and vacation or sick days.
3. Calculation of gross pay: Gross pay is the total amount of money an employee is owed before any deductions. It is calculated based on the employee's hourly rate or salary, and the number of hours worked.
4. Calculation of deductions: Various deductions such as taxes, social security contributions, health insurance premiums, and retirement contributions are subtracted from the employee's gross pay to arrive at the net pay.
5. Direct deposit: Once the net pay is calculated, the amount is deposited directly into the employee's bank account.
6. Payroll taxes: Employers are responsible for paying various payroll taxes, including federal, state, and local taxes, as well as social security and Medicare taxes.
7. Recordkeeping: Employers must maintain accurate records of all payroll transactions, including employee data, pay rates, hours worked, and deductions.