# Payroll

URL: /systems/people/payroll · Id: `capability:payroll`

> Payroll pays employees on schedule, withholds and remits taxes, and files employer returns in every state where they work.

Payroll pays employees on schedule, withholds and remits taxes, and files employer returns in every state where they work.

## Contract
| Clause | Terms |
| --- | --- |
| Starts | The first employee is hired, after [Tax IDs](/systems/finance/tax-ids) registers the [Company](/business/nouns/company) as an employer. |
| Each run | Prepared by agents, approved by the [Payroll Specialist](/agents/people/payroll-specialist) as the [Setting](/business/nouns/setting) requires, and paid on the scheduled day. |
| Signs | An officer signs employer returns, or authorizes a reporting agent to sign them ([Sworn filings](/systems/legal-and-corporate/floor/sworn-filings)). |
| Records | Each run in [Pay runs](/systems/payroll), posted to the [Ledger](/systems/ledger). |
| While held | Not used. Employees join a [Startup](/business/nouns/startup) that has its own Company. |
| Not in | An [Autonomous](/agents/operating-models/autonomous) Startup, which has no employees. |

## Verbs
| Verb | Object | Event |
| --- | --- | --- |
| [PayRun.prepare](/business/nouns/pay-run/prepare) | [Pay Run](/business/nouns/pay-run) | [`PayRun.prepared`](/business/events/PayRun.prepared) |
| [PayRun.approve](/business/nouns/pay-run/approve) | [Pay Run](/business/nouns/pay-run) | [`PayRun.approved`](/business/events/PayRun.approved) |
| [PayRun.pay](/business/nouns/pay-run/pay) | [Pay Run](/business/nouns/pay-run) | [`PayRun.paid`](/business/events/PayRun.paid) |

## Interfaces
- [API](/code/api/reference)
- [SDK](/code/sdk/reference)
- [CLI](/code/cli/reference)
- [MCP](/code/mcp/reference)

## Upstream
payruns.co, under an Agreement.

## Example
An onboarding-video studio hires two editors who live in different states. The first run on the 15th withholds for both states, and both state accounts exist before it starts.