The 3 Drivers of Payroll – HR, Finance and Admin Department

Payroll has always been a matter of conflict in organizations. It is an ongoing topic of debate as to whose table it should be placed on. Some say it’s a matter of money, the finance department should take care of it. Others wonder if it should go to the human resources department as it concerns employee payout. And then there are those who feel payroll must be controlled by the admin staff, given the regulatory management involved.

As per recent research, some sources reveal that the maximum number of organizations practice payroll processing as a part of the HR operations. However, it is completely up to the business owner/CEO/employer to decide if it is going to be handled by the HRs, the finance professionals or the admins.

The truth is that it cannot be managed by one department alone. At some point, the other two have to intervene to run the payroll tasks smoothly. It is collectively orchestrated by the experts from each field, i.e., human resources, finance, and admin. Thus, companies prefer purchasing payroll software that can perform most of these tasks mechanically, and the rest is handled by the personnel from each domain.

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• Human Resource Department For Payroll

Although many people believe payroll should be in the hands of the financers but since it is an employee-facing function, it must primarily be in the HR’s grasp. Be it the CTC, bonus or benefit finalization at the time of recruitment, time and attendance management, or clearing dues on employee exit, in almost all the stages of the employee lifecycle, the main skill set, and even the authority is in the hands of the human resource department.

• Finance Department For Payroll

Now comes the monetary part. Since payroll is the game of employee salaries, remuneration, or payroll and stuff related to the same, the finance department plays a major role here. From accounting, expense management to general ledger reconciliations and taxation compliance, the major money-related processes are governed and performed by the finance department. And the cherry on top is, payroll software does more than half the work to assist the operator.

• Administrative Department For Payroll

The story doesn’t end here. For a long time, the above two areas were in the discussion, but it has been observed that the administrative department also has a role to play. The on-time salary deposit in the accounts of employees, the fine deducted from salaries during payout, and the additional payments made by the workforce during any recreational activities of the company are all taken care of by the administrative department.

So, the bottom line is, one cannot claim that an intricate procedure like payroll can be completely managed by a single department. It is a collective responsibility of all the three aforementioned departments to come together and function harmoniously for a streamlined payroll process. HROne is an eminent HCM suite, trusted by over 3.5 lacs+ satisfied users, most of which find payroll to be its most robust HR module.