Question 1

What is the difference between payroll and payslip?

Accepted Answer

Payroll is the process of paying the salary to each employee, and a payslip is a document that tells you how much salary the employee received, the month of salary disbursal and the designation and other employee information.

Question 2

What is the difference between payroll and compensation?

Accepted Answer

Payroll is the process of depositing salary in employee accounts and compensation is a specific component of the salary which describes the benefits or allowances the employee is eligible for.

Question 3

What is the difference between payroll and salary?

Accepted Answer

Payroll is the process of depositing the salary in the accounts of the employees and salary is the amount received in each account once the payroll process is complete.

Question 4

What is the difference between payroll tax and income tax?

Accepted Answer

Payroll tax includes taxes like social security tax, medical care tax and unemployment tax etc. which are paid by the employer. Income tax is levied on the income of the individual and is divided into separate slabs with each having a particular deduction.

Question 5

What is on-roll job meaning?

Accepted Answer

An on-roll job refers to a position where the employee is hired directly by the company and is on the company’s payroll. These employees receive regular salaries, benefits, and are subject to the company’s employment policies and regulations.

Question 6

What is the difference between payroll, on-roll, and off-roll?

Accepted Answer

Payroll is of two types, on-roll and off-roll. In on-roll, you work directly for the company as an employee and are paid directly by the company itself. You also have employee benefits since you are a permanent hire. Under off-roll payroll, you are working on the third-party company’s payroll and will be paid by them. You are also on a temporary or contract-based role with the client company and not offered any of the benefits due to full-time hires

Payroll

Difference Between Company Payroll and Third-party Payroll

Payroll Structure in India – Components, Types & Benefits