HRSINGAPORE Community Discussions
Payroll Function - Who Should Be In-Charged?
Would appreciate feedback on who does payroll in your company?
My accounts department claims it's a HR function.
Previously payroll processing was done by Account Dept and now they want to take that processing function out and pass it to HR, with Accounts Dept only issue cheques for salary payment.
REPLIES & COMMENTS
I’m currently in a SME and payroll is handled by Accounts Dept.
Previously, in a MNC, payroll is handled by HR Dept. Hence it really depends on the organisation/ management you are working in.
Hope that helps!
It is a HR function. Compensation and Benefits. This falls under Compensation
I worked in a big MNC before and the payroll function there was under HR’s responsibility. From my recollection, the reason behind that was due to the confidential and sensitive nature of payroll as well as the required knowledge in regards to regulations (e.g. CPF, etc.).
Since then, I’ve moved to SMEs and there are no longer such issues as Finance & HR departments are always combined as one. However, having been responsible for both, I believe payroll should be a HR rather than a Finance responsibility as it is more than just paying the right salary to the right employee. There are also other factors/situations involved (ad hoc or otherwise) which can be very sensitive and can often affect morale of employees who are doing the calculations and processing payments when they are not trained in HR.
Another point is that segregating the calculation process and payment process into 2 separate departments can also act as an additional form of control.
Payroll is under the scope of HR function.
In some organization, the payroll is done by the Accounts Department due to manpower constraints.
If your company has a HR personnel, it is rightfully for HR to do the payroll.
The century long debate of who suppose to do payroll.
Just a defensive stance for all HR professional, we deal in policy setting, revision and execution.
There is usually a Payroll person, who handle the main bulk of who get which amount, this person usually park under HR headcount, and place physically in the HR department due to the confidentiality nature of the work.
There will usually be HR officer who assist this person in the preparation work to get the amount for payment necessary.
When a Company doesn’t have a HR, this person usually come from finance.
In a MNC, as mentioned, this Payroll person is usually park under HR department, Payroll will prepare all necessary document needed to pay salary, and finance to authorise the payment.
A MNC that ask a HR to do payroll as part of their job are not realising the importance of HR in the Company.
In a SME, with a HR department, there will usually be this Payroll person who perform the same job, just that usually is the boss that authorise the payment.
In a SME, without an HR department, there will still be this payroll person, this person is usually from finance or the boss themselves.
Thus, as a HR professional, I strongly believe this is a scope to be under HR department for a JD under Payroll. Kindly do not hire HR executive and ask them to do payroll, it is worlds apart.
Payroll is one of HR functions in my current company but it was FIN function in my previous company. Hence, I can only conclude that it is not so specific as per say.
Currently my company payroll is fully in charge by HR personnel due to confidential issues.
Our payroll Function is done by HR and Accounts Department will counter check before payment payment by GIRO.