Permanent employees, regular employees or the directly employed, work for an employer and are paid directly by that employer. Permanent (regular) employees do not have a predetermined end date to employment. In addition to their wages, they often receive benefits like subsidized health care, paid vacations, holidays, sick time, or contributions to a retirement plan.
Contractual staff or temporary employment refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. Temporary employees are sometimes called "contractual", "outsourced", or the word may be shortened to "temps", or Off Roll. Contractual staff/workers may or may not receive benefits as given to permanent employees as a cost cutting measure by the employer to save money.
From a human resources viewpoint, the payroll department is critical because employees are sensitive to payroll errors and irregularities: Good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholding and deductions, and that the withholding and deductions are remitted in a timely manner. This includes salary payments, tax withholding, and deductions from paychecks.