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Payroll Function -- HR or Accounting?
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Payroll Function -- HR or Accounting?
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
I'm familiar with reasons why Payroll should be a part of HR. What are some reasons Payroll should be a part of Accounting. Which works better?
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Forums » Topic Forums » General Forum » Payroll Function -- HR or Accounting?
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Payroll Function -- HR or Accounting?
posted at 8/13/2001 4:38 AM EDT
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Posts: 280
First: 6/22/2000 Last: 10/13/2002 |
Running a payroll involves a lot of accounting functions/tasks/knowledge, such as posting to the general ledger and having a detailed knowledge of tax law. As well, keeping payroll out of HR is a "check" to make sure that HR stays honest. This is part of the standard accounting checks and procedures and can be explained in fuller (and better) detail by an accountant. While it's probably easier (for HR staff) to have Payroll report in to HR, it's probably not the best way to ensure things are done properly (it's hard for HR to supervise the accounting portion of the job when they - HR - are not accountants) and legally. |
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Payroll Function -- HR or Accounting?
posted at 8/18/2001 12:08 PM EDT
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Posts: 1
First: 8/18/2001 Last: 8/18/2001 |
I believe the payroll function should be in accounting as it is an important part of the accounting process. I think the best of both worlds is having an interactive system, where HR can process payroll actions, benefit changes, loan and 401K changes directly into the system. This is immediate and payroll/accounting has the information it needs to keep track. So does HR. |
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Payroll Function -- HR or Accounting?
posted at 2/20/2002 4:48 PM EST
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Posts: 10
First: 2/20/2002 Last: 4/3/2003 |
Payroll should be with accounting. But what our organisation does, is that HR processes, b4 the 18th of every month factors like Absentism, Loans, advances, leaves(annual & Sick)and then forwards to accounts which then feeds them into the payroll for final payment. |
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Payroll Function -- HR or Accounting?
posted at 2/26/2002 12:08 AM EST
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Posts: 1
First: 2/26/2002 Last: 2/26/2002 |
In my 15 years of HR experience, I have seen the payroll process evolve OUT of Accounting and INTO HR. I believe that 90% of payroll processing issues are a result of an HR function (hiring, firing, salary increases, benefit deductions, LOA, etc.), typical items that an Accounting Clerk is not trained extensively in. I do however strongly believe that Accounting has a role to play when it comes to auditing and posting the payroll figures to the GL. This is where HR gets "checked", and Accounting can spot errors. |
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Payroll Function -- HR or Accounting?
posted at 2/26/2002 1:25 AM EST
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Posts: 67
First: 9/24/2001 Last: 10/7/2010 |
I started in the field in a combined HR/Payroll position. Because of the seasonal nature of our business, where the ratio during peak was 1:140, I spent 50-70 hours a week processing payroll (in-house). As a result, HR got less than the back seat. I have little Accounting background and most of my mistakes in Payroll were because I didn't know and wasn't trained properly.
I've since moved 100% into HR and share the responsibility of supervising the Payroll Clerk. I stay away from tax and other Accounting issues and work with her mosting on legal and other HR issues, as they affect Payroll. So, to answer your question, I vote for keeping Payroll in Accounting with shared supervision by HR. |
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Payroll Function -- HR or Accounting?
posted at 2/26/2002 1:42 AM EST
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Posts: 1
First: 2/26/2002 Last: 2/26/2002 |
Payroll is definately an Accounting function. HR and Payroll do need to work together, however, the actual processing of payroll needs to be where the Accounting department can make sure that all the T's are crossed and all the i's dotted when it comes to the actual posting and money amounts.
Certain tax laws and payments must be followed as well as certain postings to the general ledger. These are not what HR knows about or needs to worry about. HR is the employee information segment and once the HR information is fed in correctly than payroll takes over and does the processing part. It works quite well if both departments work together to insure that everything is correct. HR does not understand the Accounting features and Accounting does not always understand the HR features. This is why there are two departments. Each department does their part and sends it to the next department to finish. Shirley |
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Payroll Function -- HR or Accounting?
posted at 2/26/2002 1:51 AM EST
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Posts: 4
First: 12/15/2000 Last: 1/4/2011 |
I've worked with payroll in both areas--HR and Accounting.
My opinion: Payroll should be part of HR. Accounting departments, in my expereince, do not treat payroll with the appropriate sensitivity to compliance and time-sensitivity. Executive compensation (actually all comp.) is scrutinized outside of your compensation group, final checks are rarely up to speed with Wage and Hour and mistakes are treated with an attitude of perpetual catch-up. |
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