What Are Payroll Expenses?

Cash expenditures paid by state organs and enterprises and institutions to employees for labor compensation. In China, it includes wages paid by the state, wages paid by collective units, other labor remuneration, and other wage expenditures on individuals. It is the main channel for banks to invest cash, accounting for more than 40% of total cash. According to state regulations, banks should exercise supervision over wage expenditures. Wages paid by various units to employees must be verified and paid by the bank in accordance with the approved wage plan. Most of the money that banks put out through the wage channel forms the purchasing power of consumer goods, and the rest is used for service expenses, increasing savings and household cash deposits. ^[1]