How do HR and payroll work together?

As HR Consultants, we fill a variety of roles within the human capital spectrum. Although these roles many times do not include the Payroll function, HR and Payroll are closely intertwined.

  HR Payroll   Apr 23, 2024   0   49  Add to Reading List

In My company we only focus on Permanente Recruiting, but I ll share you how HR and Payroll together work enhance company finance. Also how to handel both duties together.

As HR Consultants, we fill a variety of roles within the human capital spectrum. Although these roles many times do not include the Payroll function, HR and Payroll are closely intertwined. Sometimes this can create challenges when the functions aren't clear on responsibilities and the impact of their duties.

Human Resources:

  • Enters new hires/terminate employees
  • Enters benefit deductions
  • Processes salary/rate changes
  • Uses PAF (Personnel Action Form) or another relevant form, to notify payroll of bonus or payouts owed to employees
  • Verifies employee's addresses for year-end
  • Works with Payroll to solve time issues
  • Processes tax and direct deposit changes

Payroll

  • Verifies new hires/terminate employees
  • Verifies benefit deductions
  • Verifies salary/rate changes
  • Processes payroll and/or special payouts
  • Mails out W-2s
  • Sends timesheet reminder to employees
  • Reviews timesheets/works with HR to solve time issues

Payroll functions are covered by either the finance department or human resources department in most organizations. Essentially, payroll is number-driven and calls for knowledge of tax laws and accounting. Thus, many respondents believe it should be positioned with the finance department.

At the same time, payroll is also considered a function of HR because it pays and deals with people.