Total Payroll Cost is the sum of all expenses related to managing an organization’s workforce. These include payments such as base salary, benefits, bonuses, and commissions, as well as costs related to payroll taxes, health insurance premiums, retirement contributions, and employee training. To ensure compliance with applicable laws, it is important for employers to accurately calculate and report their Total Payroll Cost. Put simply, Total Payroll Cost is an organization’s most important metric for measuring their total employment-related expenditures.