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Payroll processing is a vital function that ensures employees are compensated accurately and on time. It involves calculating wages, withholding taxes, managing benefits and deductions, and issuing payments through direct deposit or checks. A well-managed payroll system also handles compliance with federal, state, and local regulations, including tax filings and labor laws. By streamlining payroll operations, businesses can reduce errors, maintain employee trust, and focus more energy on strategic growth and workforce development.