Annual Employee Payroll is a technical term that refers to the annual amount paid to all of your employees (both full and part-time), including W-2, 1099, and cash wages. In other words, the amount does include wages, commissions, bonuses, overtime pay, and holiday/sick/vacation pay. Annual employee payroll does not include tips, severance pay, overtime pay above and beyond the regular rate of pay (this may vary state to state), payroll limitations, and any salaries of Executives, Officers, Owners, and Partners who elect to be excluded from coverage.