Payroll (PY)

Lump-sum payment of income which has already been earned but for which payroll has not yet been run. Such payments are usually effected between two ordinary payments of either wages or salaries.

Rather than pay the full amount of earned income after each payroll run, many companies and organizations prefer to effect one or even several advance payments during the payroll period. The advance payment is roughly equal to the amount of income which the employee has already earned.

The exact amount of remuneration is calculated later. The advance payments are deducted from the total and the employee receives the remaining amount, usually when wages and salaries are paid in the following month.