Register now or log in to join your professional community.
Payroll function is under HR or Accounts
While payroll deals with compensating employees, human resources takes care of employee relations. Although the two departments have distinct roles in an organization, they also share functions that are crucial for the organization’s success.
Although Payroll deal with the HR procedures, it is a significant aspect of the accounting process.
payroll is both and should not be isolated to one grouping
It is actually a part of HR but in many companies it is either distributed or done by accounts.
Payroll, although seems related to the employees, but technically it is quite distinct from HR.
We can't ignore the importance of HR and Accounts Department in the whole process.
I think the salary processing should be delt by the HR department in the larger organisations and after processing of salaries the other tasks such as employees taxes and pensions related tasks should be delt by the accounts department.
although in a real world, some companies do also have separate department of accounts, payroll and HR.
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
Payroll function is part of HR Department only because payroll is calculated based on Time keeping records and Time Keeping is one of the most important duty of HR department. Time keeping is not the job/duty of accounts department.
Technological advancement further cloud base accounting ascertain HR or Accountatnt works way unconventional. Your punch in and out directly report to concern payroll agency which proceeds byweekly or monthly sheets, and forward after concerete HR Review to concerned Financial Institution for further pay disbursement.
Story short, within few years, you will not find accountants or front desk banking staff.
Admin or HR teams are responsible to prepare the payroll as they will be holding attendance details. but its the duty of accounts teams to verify the same and also accounts team has to support them by giving details of deductions(Loan, ticket etc) or additions (Allowance etc) if any.
Payroll requires knowledge of HR, particularly job classification, labour laws as well as that of Accounts and therefore Payroll is a joint responsibility between HR and Accounts. In other words Payroll is a HR function and Accounts function as wel
