Payroll and Payroll Taxes Payroll is the amount paid to em ployees for services provided Payrolls are im portant because 1. Good employee relations demand that payrolls be calculated accurately and paid as scheduled 2. Payroll expenditures are subject to a variety of federal, state, and local taxes 3. Total payroll expense(gross payroll plus payroll taxes)has a major im pact on net income c10-7C10 - 7 1. Good employee relations demand that payrolls be calculated accurately and paid as scheduled. 2. Payroll expenditures are subject to a variety of federal, state, and local taxes. 3. Total payroll expense (gross payroll plus payroll taxes) has a major impact on net income. Payroll and Payroll Taxes Payroll is the amount paid to employees for services provided. Payrolls are important because: