Forums
Payroll Function -- HR or Accounting?
General Forum
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?
2
Cat:Topic ForumsForum:ForumId53
Cat:Topic ForumsForum:ForumId53Discussion:DiscussionId17068
Forums » Topic Forums » General Forum » Payroll Function -- HR or Accounting?
|
Payroll Function -- HR or Accounting?
posted at 3/5/2002 3:14 AM EST
|
Posts: 1
First: 3/5/2002 Last: 3/5/2002 |
Having payroll fall under Accounting in our organization would be wonderful unless your controller is very "controlling" as our is. Our payroll falls under HR, and works well. Keeps the salaries in HR and makes sure that the only people who see that information are the one's who control it. |
|
|
Payroll Function -- HR or Accounting?
posted at 3/7/2002 7:41 AM EST
|
|
Posts: 5
First: 3/7/2002 Last: 9/18/2006 |
After 20 years in Human Resources and starting out after 7 years in retail operations where store managers prepared the payroll, my conclusion and recommendation is that Payroll report to HR. I've worked in situations where payroll reported to accounting and where it has reported to HR (i've supervised the payroll function 3 times to date). To date I've yet to find any payroll person beyond the clerical level who really understands Payroll in the accounting function (both accounting, tax and HR related issues like FLSA), and that includes having worked with 3 Fortune 50 corporations!
HR handles the problems surrounding 97% of payroll related issues, all of them ultimately being employee or labor relations issues. HR also tends to handle or use 99% of the data relating to employee bio information AND employee benefits (which are sometimes dependent on payroll or its systems). The accounting aspects of payroll have become so automated or contracted out that the arguments for placement in accounting are meaningless or purely ego based. Posting information to the General ledger is simply a matter of just giving accounting the information they need to perform this task. Keeping people honest is a simple matter of monthly or regular audits and enforcing a Table of Authority. In the final analysis it comes down to 2 things: a) What structuring of job tasks best fits the needs of a particular organization? If there is no on-site HR presence it makes perfect sense to roll payroll under the wing of Accounting or Adminstration. Where there is a strong HR presence it should be rolled under the HR function, and MAKE SURE THE HR PEOPLE ARE ADEQUATELY TRAINED TO PERFORM THE JOB (including a tax course from H&R Block if needed). b) Controlling Cost and Delivering high Quality SERVICE to the customer (employees). My experiences have shown that consolidating HR and Payroll maximizes the efficency of the Information-Benefits-Payroll process and improves the service to employees by cutting out the run around employees tend to get when they have a question or problem that needs to be solved. My opinions on this topic are very strong and reinforced by daily experiences. In the end it is just one opinion. |
|
|
Payroll Function -- HR or Accounting?
posted at 6/6/2011 12:35 PM EDT
|
|
Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
Why are you asking the question about who's job it is?
I have never seen payroll processing as part of an accountant's job per se since it does not require any formal knowledge of accounting to do. It does take specific payroll knowledge skills to do the processing job well and a good bit of aptitude regarding whatever software package you are using. Once the payroll processing is complete accountants are involved in doing certain account reconciliations. It takes both groups to complete the enitre task. The payroll processing piece can sit in either an HR Department or an accounting/finance department. |
Forums » Topic Forums » General Forum » Payroll Function -- HR or Accounting?
