HR and Payroll

Integration o Payroll And Human Resource

Human Resource and Payroll are very vital role in any organization

While payroll deals with compensating employees according to CTC of employees the same time Human resources takes care of employee relations. These two Departments have distinct roles in an organization.HR function and Payroll function when work integrating then the result become more effective and reliable will see this in this HR Blogs.It helps to reduce paper work as well it also allows to do more automation in the process. And whenever Human resource management and Payroll want can avail and provide the consolidated re repot to management.

Function of Payroll

Payroll is a process under which employee get his salary in his account.

In Payroll process employee salary has been calculated and per the days present and base month according to the calculation employee get disbursement their monthly salary. The payroll Process does not stop here but have to proceed with several payroll compliances like Tax Law, Payroll checks, record keeping various paperwork for new hires. Apart from that under the flexi pay component employee select different difference reimbursement component which need to be taken care by payroll. Apart from that Overtime, Bonuses and Holidays payment.

Function of HR

Its is duty of every HR to hire and best resource for the organization because the growth of any organization depends on the employees of the organization. The best resource will produce best result. Function of HRM shows the best result by providing best resources for the organization. HR should ensure that the resource which is to be hire for organization meets the expectation for that profile. HR doesn’t stop here it has very vast extension form like HR polices, Handling Corporate HR, HR function and many more.

Gap Between the Human Resource and Payroll

IF you observed Payroll is covered by either Finance department or HR Department in almost all the organization. As per the many expert’s opinion, Payroll contains and play with numbers like calculation of salary paying tax to the government and many other accounting transactions from calculating salary to post disbursing the salary to employees. Thus, due to above reason it should be in Finance Department.

But at the same time in almost all organization it is considered under HR.As many expert gives opinion that Salary is disbursed by the Payroll and its is part of dealing with employees hence it should be cover under HR department only. If you talk of maternity payment made by payroll then it should be covered by HR department only as per the federal and state anti-discrimination rule.

So does Payroll Falls HR or Finance

So there is still not any fix rule or extract that say Payroll should be the part of HR or Finance.

But yes, in many small organizations you can experience that there is no any such separate HR department the salary used to be processed by Account Team only and in Some origination HR give the separate work process internally for their employee salary disbursement.

However, to the extent it is cleared the HR is the main body to processing the salary because it deals with the employee information it could be the Maser information of employees or Compensation structure of employees.

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