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Home » Payroll functions in comparison to Human resources as explained by Brian C Jensen

Payroll functions in comparison to Human resources as explained by Brian C Jensen

Brian C Jensen

When you consider payroll and human resources side by side, the former deals in compensating employees while the latter is responsible for employee relations. Even though both payroll and human resources belong to different departments and play different roles in a business, they share certain crucial functions for the success of a business. Incorporating the various aspects of the two can help reduce paperwork and further automatically update while eliminating the complexities of giving a synthesized report.

Brian C Jensen tells you the Purpose of Payroll

Payroll means the procedure through which employees get their salary. Payroll operations include managing and integrating payroll data while also reporting and depositing taxes. The section of a business organization that deals with payroll must deliver checks, sustain due to compliance in matters of tax law, keep new recruitment paperwork in a record, and edit existing files of employees. The department also handles wage subtraction, maintaining records, and authenticating the dependability of payment data. Payroll experts are also required to calculate compensations, holiday pay, bonuses as well as overtime.

HR Functions

HR aims to push the employees to do their best, in turn playing an essential role in the success of a business. The primary function of HR is hiring employees and involving the potential candidates best for the positions available. Once the recruits are on board, the HR team ensures that they perform according to their capability and meet expectations.

The human resource section is also held responsible for offering motivation to the employees through rewards like reimbursement packages or holiday bonuses, along with stipend increments. Furthermore, it provides training programs and a push towards the goals of the organization.

The overlapping of the two departments

Brian C Jensen points out that the two departments overlap each other as their functions are co-related. Several operations of the payroll department get interconnected with a few HR issues. Thus, both the departments need to synchronize their shared operations. Particular shared operations involve increasing salary, hiring new employees, bonuses, leaves, and more.

HR needs to be sensitive to the time given to payroll while they process. As HR manages employee relations, they are bound to face problems if paychecks are not processed and late. The two departments also relate to matters of confidential data involving finances, identification numbers, addresses, etc. They also need to work in harmony to make sure personal information does not fall into the hands of unsanctioned companies or individuals.

What divides the two departments?

However, with similarities, there are a few sections where the two departments take their path. Operations of the payroll department get handled by finance teams or HR. Primarily payroll is called for information on tax laws, accounting. Numbers drive it. Therefore, many emphasize that payroll falls under the finance team.

But, some believe that payroll is a part of the human resource department as it handles paying and recruiting people. As Brian C Jensen mentions, both payroll and human resources are crucial for a business organization to sustain itself in the market.