{"ok":true,"canonical_url":"https://dealroom.so/glossary/payroll","api_url":"https://dealroom.so/api/public/glossary/payroll","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"payroll","term":"Payroll","group":"Reading the business","definition":"This refers to the total compensation a business pays to its employees, including salaries, wages, bonuses, and taxes withheld. It's a significant and recurring expense.","what_it_means":"Review the business's payroll records carefully during due diligence to verify employee costs and identify any discrepancies. Understand how payroll impacts cash flow and if any owner's payroll needs to be added back for SDE calculations. Accurate payroll is essential for operations.","url":"https://dealroom.so/glossary/payroll","official_sources":[],"related":[{"slug":"employment-income","term":"Employment income","url":"https://dealroom.so/glossary/employment-income"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"},{"slug":"sde","term":"SDE","url":"https://dealroom.so/glossary/sde"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"Can I use an SBA 7(a) loan for inventory, payroll, or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-inventory-payroll-or-rent"},{"question":"Can an SBA 7(a) loan be used for business working capital, like payroll?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-for-business-working-capital-like-payroll"},{"question":"What if the business I am buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"What if the business I'm buying has unfiled tax returns or overdue payroll taxes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-unfiled-tax-returns-or-overdue-payroll-taxes"},{"question":"Can I use an SBA 7(a) loan for general operating expenses, like payroll or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-general-operating-expenses-like-payroll-or-rent"},{"question":"Can I use an SBA 7(a) loan to cover operating expenses like payroll or rent?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-cover-operating-expenses-like-payroll-or-rent"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Payroll","url":"https://dealroom.so/glossary/payroll","source_type":"DealRoom Data"}}