Which three items comprise the payroll processing framework?

• A. Period Schedule (when), Run Category (what), and Pay Group (who)
• B. Time Sheets, Tax Rates, and Benefits
• C. Employees, Managers, and HR Systems
• D. Period Schedule (when), Run Category (what), and Pay Group (who) plus Taxes

Answer: (A)

Payroll processing is organized around three axes: when to run, what to run, and who is included. The Period Schedule specifies the payroll calendar—the pay periods, processing dates, and cutoffs that determine when a run occurs. The Run Category defines the type of payroll to execute, such as a standard cycle or an off-cycle run, guiding which calculations and steps are applied. The Pay Group determines who is included in the run, grouping employees who share the same payroll rules and tax setup. Taxes play a crucial role in calculation, but they are configured separately and applied within the run as part of the tax rules, not as part of the framework itself. Therefore, the three components forming the payroll processing framework are Period Schedule, Run Category, and Pay Group.