Glossary of Human Resources Management and Employee Benefit Terms
A way to simplify and accelerate the act of paying employees on time and accurately. Payroll people love payroll software because it usually calculates withholdings and deductions, processes direct deposits, gives employees self-service access, provides full-service tax filing, generates payroll-specific reports, and has the ability to print checks. To help make the payroll process even easier, many companies offer integrated HR and payroll to help reduce the need for data double-entry and provide a more streamlined experience.
What Is the Difference Between HR and Payroll?
HR (human resources) and payroll are two departments within a business. Payroll is a list of employees and the amount of money they are paid, while HR handles a variety of tasks related to managing employees and administration, such as hiring, firing, benefits, attendance, and more.
Sometimes there is overlap between the departments, since HR might handle payroll responsibilities. However, payroll does not always fall within the realm of HR. The task of creating and managing the employee wages might also be handled by the finance or accounting department.
Is Payroll an HR or a Finance Function?
Some companies aren’t sure which department should handle payroll responsibilities. But in most cases, HR is best equipped to handle the majority of the payroll tasks, since this is the department that already deals with most employee relations. Some companies choose to split payroll responsibilities, with the finance or accounting department taking care of numbers and calculations, while HR handles any changes to the master payroll.
What Is HR and Payroll Software?
Sometimes HR software and payroll software are rolled into one convenient tool. Since many HR departments handle payroll, this is a great streamlined solution that makes it easier to handle tasks related to payroll processes, as well as other elements associated with employee relations. HR and payroll software can automate certain tasks and ensure that employees are always paid accurately and in a timely manner. This type of software can often be customized to create a unique payroll model that handles even the most complicated tax codes.
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