Payroll compliance is the consolidated set of activities involved in the production of the payroll, capturing the data and controlling it along with the calculation of allowances, deduction, benefits and the net wages.
It also includes the process of editing and dispatching the pay slips and in conformance with all legal and third-party declarations.
It can also be defined as the business process that includes applications and best practices that enable effective calculation of pay components and funds distribution maintaining compliance with all regulatory aspects.