I`d want a breakdown of sources of funds (D&E,) and uses of funds (Equip, inventory, direct labor, SG&A, work cap...). At least 1 year detailed cash flow analysis. All assumptions, sales drivers and risks.
Yes, paying direct labor should be included if neceassary to reach BP goals.
In general, funding sources (whether debt or equity) anticipate that some amount will be used for operating expenses, which would include payroll.
Most investors expect the founder(s) to receive enough "salary" to live on, but usually resist paying "top" dollar.
The payroll expense should be covered in your business plan - both the narrative and numerical portions.