Payroll Expenses

Date created: Sep 17, 2021  •   Last updated: Feb 1, 2022

What is Payroll Expenses?

Payroll Expenses refers to the total cost associated with hiring and retaining employees and independent contractors on your payroll.

Payroll Expenses Formula

ƒ Sum(Payroll Expenses)

How to calculate Payroll Expenses

Assume you have 10 employees who each receive a gross annual pay of $30K, post taxes and insurance premiums. Your payroll expenses for the year would be $300,000.

Start tracking your Payroll Expenses data

Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Payroll Expenses instantly.

Klipfolio dashboard image

How to visualize Payroll Expenses?

You have several options to visualize your Payroll Expenses data. If you want to segment this data by department or year, choose a pie chart or bar chart. Line charts can help you see an increase or decrease in expenses yearly or monthly. Finally, a summary chart or metric view shows you the current value of the metric that you can then compare to a previous period of time. Take a look at the examples:

Payroll Expenses visualization examples

klipfolio image

Payroll Expenses

Pie Chart

Here's an example of how to visualize your Payroll Expenses data in a pie chart to identify the most prominent segment.
klipfolio image

Payroll Expenses

Bar Chart

Here's an example of how to visualize your Payroll Expenses data in a bar chart to observe segmented data.
klipfolio image

Payroll Expenses

Line Chart

Here's an example of how to visualize your Payroll Expenses data in a line chart over time.
klipfolio image

Payroll Expenses

$171k

arrow-right icon

13.27

vs previous period

Summary Chart

Here's an example of how to visualize your current Payroll Expenses data in comparison to a previous time period or date range.
arrow-right icon
arrow-right icon

Payroll Expenses

Pie Chart

Here's an example of how to visualize your Payroll Expenses data in a pie chart to identify the most prominent segment.

More about Payroll Expenses

Payroll Expenses measures what it costs your business to hire employees and contractors. This generally refers to the salaries paid to employees, less any taxes and other costs that are submitted to a third-party on behalf of the employee (such as insurance premiums and benefits). The difference between payroll expenses for employees and contractors is that, often, contractors are only paid for the services rendered and are not provided benefits. This distinction is important for tax purposes. Generally, payroll expenses are recorded against revenue earned in the accrual form of accounting, where expenses are recorded when they are incurred.