payroll costs

USAGE SUMMARY

"payroll costs" is a correct and commonly used phrase in written English.
It refers to the total amount of money that a company pays its employees for a certain period of time, including wages, salaries, benefits, and taxes. Example: Our company's payroll costs have increased by 10% this year due to the rising cost of employee benefits.

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Let's say our payroll costs us $2 billion.

The New York Times - Sports

But Congressional financing has lagged the agency's escalating payroll costs.

The New York Times - Health

Retailers can also reduce payroll costs because fewer employees are needed.

The New York Times

It would refund 15 percent of new payroll costs in 2010 and 10 percent in 2011.

The New York Times

So 2.5% of payroll costs will now be used for training.

The Economist

Partly, it's a matter of incentives: store managers are typically evaluated on their payroll costs.

The New Yorker

It required employers to set aside 34 cents for every $100 in payroll costs.

The New York Times

The simple story is that Nassau is being crushed by exorbitant payroll costs.

The New York Times

City officials said Thursday's agreement would increase payroll costs by $540 million over the four years.

The New York Times

"It will reduce payroll costs for employers and help with fraud and error.

The Guardian

The bank is also offering more conventional part-time work to reduce payroll costs.

The New York Times

Expert writing Tips

Best practice

When discussing "payroll costs", be specific about what is included (e.g., wages, benefits, taxes) to avoid ambiguity. Provide context to your audience.

Common error

Don't assume "payroll costs" represent all business expenses. While significant, they exclude costs like rent, utilities, and marketing. Failing to distinguish could lead to an inaccurate assessment of a company's financial health.

Linguistic Context

The phrase "payroll costs" functions as a noun phrase, typically used as the subject or object in a sentence. It identifies and refers to the total expenses associated with compensating employees, as demonstrated by Ludwig.

Expression frequency: Very common

Frequent in

News & Media

65%

Formal & Business

25%

Encyclopedias

2%

Less common in

Science

2%

Wiki

2%

Reference

2%

Ludwig's WRAP-UP

The phrase "payroll costs" is a common and grammatically correct noun phrase referring to the total expenses a company incurs for employee compensation. Ludwig AI confirms this, with numerous examples from reliable sources such as The New York Times and Forbes. Its primary function is to quantify employee-related expenses in business and economic contexts, and its register is generally professional. To be precise in writing, it's important to specify which elements you're including when using "payroll costs", like wages, benefits, and taxes, and avoid assuming it represents all business expenses. Related phrases include "employee compensation expenses" and "labor expenses", which offer slightly different nuances.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

employee compensation expenses

Focuses on compensation rather than the broader cost, implying a more direct payment aspect.

labor expenses

Uses a broader term for labor, encompassing all expenses related to workforce.

wage expenses

Specifically refers to the cost of wages, excluding benefits and other compensation.

personnel expenditures

A more formal term emphasizing the spending aspect related to personnel.

staffing costs

Highlights the costs associated with staffing, including recruitment and training.

salary expenses

Similar to wage expenses, but generally refers to fixed compensation.

workforce expenses

A general term for expenses related to the workforce, similar to labor expenses.

employee remuneration costs

A more formal phrase that includes all forms of employee payment and benefits.

compensation budget

Focuses on the budgeted amount for employee compensation, rather than the actual costs.

employment costs

A general term that covers all expenses related to employing individuals.

FAQs

What elements are included when calculating "payroll costs"?

Payroll costs typically include gross wages or salaries, bonuses, commissions, paid time off, payroll taxes, and employee benefits like health insurance and retirement contributions.

How can a company effectively reduce its "payroll costs"?

Strategies include optimizing staffing levels, outsourcing certain functions, offering voluntary early retirement packages, implementing automation, and negotiating better rates for employee benefits.

What is the difference between "payroll costs" and labor costs?

"Payroll costs" generally refer to direct employee compensation and related taxes and benefits. Labor costs may encompass a broader range of expenses, including contract labor, training, and recruitment.

Are "payroll costs" tax-deductible for businesses?

Yes, "payroll costs" are generally tax-deductible as a business expense. However, there might be limitations or specific rules depending on the jurisdiction and the type of expense. Consult with a tax professional for specific guidance.