In a broad sense, payroll accounting is the calculation of remuneration for work performed by an employee. More specifically, payroll accounting consists of a variety of processes that are becoming increasingly important due to the employer’s increased obligation to supply benefits and medical welfare.

These benefits are products of:

•   Labor law
•   Tax law
•   Contribution law
•   Benefits law
•   Civil law
•   Reporting law
•   Information law
•   Statistics law

Gross and net pay comprises the individual payments and deductions which are calculated during a payroll accounting period, and are received by an employee. These payments and deductions are included in the calculation of pay by uniquely distinguishable wage types.

Payroll is predefined in the SAP HR system for many countries specifically (e.g. Payroll United States, Payroll Spain, Payroll Japan) and all other countries' payroll comes under the heading of "International Payroll".

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