Payroll is a page that shows what you owe your employees based on their wages, timecard and paid time off.
It shows employees on the left side, what is their total paid time (consists of regular and paid time off time) and the cost of this time according to their wage.
You can set a wage on the employee profile > Position / Wage:
Time off type can be marked as paid or unpaid.
If marked as paid, you can specify exact number of paid hours when creating a time off.