What expense category does payroll processing come under?

Payroll processing can come under a few different expense categories, depending on how your business is structured and what type of payroll service you use. The most common categories are:

Wages and Salaries

If you have employees, then their wages and salaries will be processed through payroll. This will include any bonuses, commissions, or other compensation that is paid out through payroll. The total amount of these wages and salaries will be deducted from your business's profits.

Payroll Taxes

Payroll taxes are taxes that are withheld from your employees' wages and salaries. These taxes include federal and state income taxes, Social Security taxes, and Medicare taxes. The total amount of these taxes will be deducted from your business's profits.

Payroll Services

If you use a payroll service, then the cost of that service will be deducted from your business's profits. Payroll services can include online payroll services, software, and support from a payroll specialist. The cost of these services will vary depending on the features you need and the size of your business.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below

Zero-touch expenses

Ramp saves you hours of work every month with a seamless expense automation process.
Explore demo