Payroll expenses refer to the costs associated with compensating employees for their time, labor and services. This includes salaries and wages, bonuses, benefits such as health insurance, paid leave and any other forms of remuneration that are given out to staff members. Payroll expenses also include payroll taxes, which must be paid by employers on behalf of their workers. All these costs together make up an organization’s total payroll expense. Ensuring that these expenses are managed correctly is essential to ensuring a company’s financial stability.