Compensation and benefits encompass the overall rewards and incentives that employers offer to the employees in exchange for the work and contributions towards the organization that may be in the form of monetary compensation such as bonuses, profit-sharing or stock options, and non-monetary benefits, including health insurance, retirement plans, paid time off or wellness programs.
Whereas payroll is specifically referred to as a process of calculating and disbursing employees’ wages or salaries that includes administrative tasks associated with managing employees’ compensation and benefits. Payroll includes calculations of employee payments, deductions, and taxes.