Importance of HR and Payroll


Importance of HR and Payroll


There are many aspects which an HR must contribute to Payroll. HR and Payroll may be a process of calculation of employee wages and salaries which is recurring in every month/week. HR’s role comes in the picture right from the joining of the employee, designing of salary structures. Then checking attendance, leave balances against leaves taken. Then the calculation of gross wages as per leaves deductions these compliances are deducted from employee wages/ salaries. There could be other deductions including loan, mobile expenditure, and loss of company property by employees, which are always under HR’s control. When an employee leaves the corporate, his/her full and final amount calculation, removing the name of an employee from payroll calculation may be a responsibility of an HR and payroll.


Payroll refers to the method by which employees receive their salary. Functions involve balancing and reconciling payroll data and depositing and reporting taxes. The payroll takes care of wage deductions, record keeping and verifying the reliability of pay data. The payroll delivers payroll checks, maintains compliance with tax laws, records paperwork for brand spanking new hires and edits existing employee files. Payroll professionals also are liable for calculating reimbursements, bonuses, overtime and holiday pay.

Human Resource

Managing people within the organization, the human resources department aims to bring out the simplest in employees, thus contributing to the success of the organization. The first responsibility of the human resources department is to rent new employees, and this involves attracting the proper candidates for available positions. After they carry on new employees, HR professionals must confirm the workers deliver consistent with expectations.

Where the 2 Functions Overlap

Many payroll activities are associated with HR issues therefore the payroll and human resources departments must coordinate shared functions. 

The HR and payroll departments also are aware of confidential employee data, including financial information, Social Security numbers and residential addresses. The 2 departments must work together to make sure that this information doesn’t fall prey to unauthorized individuals or companies.

Another important, but linked concept is that the incontrovertible fact that HR and Payroll software contains significant employee-related tip, often accessed or relied upon by HR. for instance, Payroll information might be analyzed to support web-based HR  software diversity and equality agendas. These are employee-related areas which will be managed by HR but are intrinsically linked to data held and controlled by those in Payroll. If Payroll is situated within finance, it’d be harder for HR access data to analyze whether diversity and equality policies are being productive. Offering equal opportunities or fair pay are just two examples, but there are often more. By closely linking Payroll and HR operations it’s possible to trace correlations and put in situ systems for reducing inequality. Together, HR and Payroll functions have all the pieces to place puzzles together to develop, analyze and implement extremely effective employee policies and initiatives.

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