Is payroll part of an HR activity or a financial matter?

From a segregation of duties perspective I would say Finance (salary calculation, journal entry, etc.) begins where the HR administration (employee changes e.g. number of working days, change of address, new job title, etc.) stops.I know it does not answer your question but it definitely shows how close Finance and HR should work together.

HR handle the employee detail, leave detail, off days etc and finance handle payroll counting like bonus, incentives etc accurately and record according journal entries

pay roll is a main financial transactions it should be debited each employees and expense of the company

Payroll functions(time writing, salary/overtime/leave calculations) are HR related activities which will be the basis of Finance dept. for the salary related matters.

The process is HR activity but effects financially.

It is partly for HR and finance.It is a mixture of the HR and Finance. HR is responsible for the attendance  for a particular month,and then finace will calculate the payroll on the basis of the information provided by the HR. So both are co-related with each other.

Payroll involve various calculation like deductions,PAYE allowance and other benifits so it requires lot of accounting work as well as it also require HR contribution to calculate payroll like deductions for holidays calculated on basis of unpaid holidays which require hr support

IT COVERS BOTH HR AND FINANCIAL

Payroll from an HR Perspective

For many HR professionals, processing payroll is one of the many deliverables required of their roles. The argument that payroll services should stay within HR is very often exactly the same reason why recruitment, training and development, compensation and benefits etc. (you get the drift…) are HR’s responsibilities.

• Employee confidentiality should be managed at HR level, so payroll would naturally reside with the HR department.
• HR primarily deals with employee relations, so if there are queries on payroll, HR should be responsible.
• HR is best positioned to deal with payroll, since the majority of payroll data originates from HR activities such as recruitment, terminations, promotions, unpaid leave, benefits, deductions etc.
• HR has competency in labour laws pertaining to pay, medical, leave (time off) etc., which forms a big part of payroll legislative compliance.

Payroll from a Finance Perspective

On the other hand, there are advocates who believe that payroll processing should always be an accounting function’s responsibility within the finance department.

• Running payroll involves accounting functions and knowledge such as reconciliations, posting to general ledger etc., which are the core responsibilities of the finance department.
• Taxation issues on payroll matters mean that finance professionals are better placed as expert advisors for the organisation.
• Strong internal controls would dictate that payroll is generally a finance job, as HR professionals are not usually aware of the strict legal and audit procedures that payroll must follow to be in compliance.
• Payroll is often the largest expense for most organisations and it should therefore report to finance for budgetary reporting and monitoring purposes. 

Yes Payroll Creation is the Part of HR and Finance,HR providing the attendance ,time sheet ,Joining date,if any deduction and the finance team varryfying this and process for WPS.

For me I believe it's both part of HR and financial matter. HR activity if it invloves computation of payroll of each employee and financial since it's form part of an expenses reflected in the financial statement.